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Raymond James On Implications Of Flash Elimination - NYSE Biggest Winner...
...Although once the debate moves away from Flash to its natural progression into dark pools and ultimately HFT, watch out below: "Any move to restrict high frequency trading could have a significant impact on exchanges’ transaction fees as well as revenue earned from co-location; there is also the chance that efforts to restrict HFT in the equities world could bleed over into other asset classes as well, including futures. We view potential regulatory changes as a net negative for exchanges, but it is far too early to assess the impact of potential regulation on these two issues."
The clock is now ticking on the rigger Echange - Broker/Dealer oligopoly.
From the Raymond James report:
"The SEC has already announced that it is looking into the market impact of ever-proliferating dark pools, while recent stories in the media surrounding the increasing dominance and profitability of high frequency trading (HFT) could lead to yet another SEC area of inquiry. Ultimately, these topics address the same core issues around equal access and market transparency that flash orders encounter, but could have much more serious market implications."
hat tip John
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If HFT where to be restricted we would see DOW 6000 if banned DOW 5000 or 4000+
with no short interest left (I think zero reported that we had a huge fall in short interest), 200+ for SPX... Maybe we will live to see the "no bid" day on SPX? It goes to ZERO for a second? :)
Most people don't remember, but in the morning after the 1987 crash there was no bid on a who's who of blue chip corporate America including IBM. Of course it will happen again. Just a matter of when.
Seems to me back in late February everybody was saying the market would never go up again. Now the same dolts are saying it will never go down again. You have been warned. It's up to you to do something with it to protect yourselves. I hope you do.
Getting completely out of the stock market would be a good idea to begin with.
Most likely more than it's worth, no?
And would that be bad?
Oligopoly? Try Kleptocracy TD.
Trading by fundamental analysis, what companies actually earn as opposed to losing less this time, paying dividends to shareholders, growth going forward and other fundamentally important issues would be the market, a STOCK market, not a trade by numbers in split seconds faster than the other computer type market.
But that is just toooooo difficult and tooooooo much like hard work for GS and all the other analycsystus and bwanksters
Yep. It's just a casino right now, and a crooked one at that.
I think programmers have a better future on Wall St. than Analysts! Good for Me!
Ha! Good point.
The American Stock Market is like a hot air balloon where you burn money to generate hot air, only when ther's nothing left to burn, the fall might be steep.
As long as the Chineese a willing to provide burn material it's fine, the day the're not, we'll leave a small crater in the ground.
I liken the stock market to a faulty jumpy castle operated by villainous banksters who then dine on the flesh of all who failed to escape when it became engulfed in flames.
All these opened cans of worms. Does Goldman regret having been so keen to publicize the Sergey theft?
sorta like telling the cops that your stash got stolen...
bad boyz bad boyz - whatchagonnado when they come 4u
shot 'em selves in them foot .... ROFLMAO
They had a legal responsibility to do so.
When the fall eventually happens, tomorrow or many years in the future they will regret the day there were no shorts.
Shorts will stop the fall and slow the descent and contribute to the sharp bounce from the bottom that will encourage new longs.
The bounce will be feeble without them.
Markets going up on falsehoods will crash. There have been many and this is the new one being blown up faster than all the others.
What will the call this one? The Hopium bubble, The Losses Bubble, The FEDupandStuffedwithHype bubble, The Green Weeds Bubble, The Hyper Bubble?
How about
The SuperFED bubble or ForceFED bubble
K-FED bubble, just a quick flash in the pan.
Another oxy moron, "Raymond James research". Like GS, RJ epitomizes the broken Wall Street model. They just want in on some of the flash/HFT/whatever the next scam is money that GS is onto. I hesitate to give Lord Obama much (any) credit, but a super thing the man has done is push the plan to hold brokers to a fiduciary standard when providing investment advice to clients (no more brokers getting paid on product sales). This alone would be a boon to investors, and hefty blow to the Wall Street Way. The Securities Industry and Financial Markets Association, main lobbying group of Wall Street, has apparently signed off on it. Years ago I'd have thought that absolutely impossible. What a freakin' great time to be alive in America!
Thanks cup is both halves full. By the way watch out for the poisonous vegetation as you walk the earth for two years! (Favorite soundtrack is Into the Wild by the way).
Now that the equities HFT/algo trading issues are safely on the stove and beginning to boil, lets widen our sights and have a look to the related electronic commodities trading issues (good old Goldman at the center again). FT alphaville's on the case.
http://ftalphaville.ft.com/blog/2009/07/27/63846/electronic-trading-and-commodity-prices/
I believe you are looking at an old model to explain how you think little or no shorting will affect the markets.
What future crash are you talking about?
Without shorts, a more rational (i.e., moderately longer term) view will be introduced into the investment community.
There won't be quite the rush to sell when earnings miss by a penny or even a nickel or a half dollar.
In fact, if all is true regarding the closing of shorts, then one might think the market has further to go.
However, it also introduces the issue that there was a premeditated effort to manipulate the market in this manner and unimaginably huge insider trading occurred by a very few...
lol.
Rational long term view on market prices.What is rational about Mastercard at $189.00 paying 60 cents divedend. As far as I can see that is Tulip bubble territory.
What we need is a simple rule --- any order entered must have a "shelf life" of ONE SECOND. Simple. Just one second - - sounds reasonable doesn't it?
why would an order based on an INVESTMENT decision to purchase a share (or whatever) only have a shelf life of 1 second?
anybody else see the incongruity here?
everybody and their brother socks away for retirement based on the story that the market is a store of value and, gee whiz, over the long haul will secure your retirement.
only behind the scenes, the bastards are running a casino with everyone's money and skimming it.
and to keep the casino open, they've co-opted fund managers into "trading" for returns instead of investing for returns.
this market is being propped up for several very important reasons.
one of the lesser talked about ones is the massive underfunding of public and private retirement plans.
Quite a problem out there. It seems everything has gone to crap at the same time.
Thank you, Federal Reserve.
What happens when retirees want to exchange their propped up shares for legal tender to spend.
Watch out this month for equities being 'dipped' to provide those (mainly foreign buyers) buying US debt a compelling short term reason to bid in the numerous auctions going on this month. They are seriously weighty issues and a conventional equity down/ bonds up event will very likely occur in and around these dates. Keep them in mind for the 'breach' of the uptrend should it occur.
I'm not sure these guys at RJ have a high degree of confidence on their conclusions, though they do make some interesting points.
I think the real issue is promoting transparency and open market access on all the public exchanges. The current system endorsed by the exchanges that allow for high freqency "liquidity" really isn't "good liquidity", as it leaves wide open the prospect for manipulation. RJ misses that point entirely (as if they really cared).
While Chuck Schumer is winning some populist points, his narrow focus on flash trading doesn't go far enough... though he does leave open and suggest further SEC investigation of HFT practices.
Point being, the message still needs to get out broad and wide.