CalibratedConfidence's blog

Fresh off the printers today comes a new release from Haim Bodek titled The Problem of HFT.

For the Gov't to maintain its power and control over a growing population that has pockets of civilians who are using the advances we have in technology to share and collect information in an effort to fight the on-going information battle, it will need to restrict its citizens in another manner.  So far the intelligence of the average American has been wittled down.

Shit breaks again.  It's been covered plenty of times.  The fragmentation within the US equities market its beyond management.  It gets old repeating the same tune.  The SEC is inept, the HFT industry is selfish, and the Academic research on the topic is conflicted and corrupted.  The exchanges offer unpublished orders to top bidders and the integrity of the market has vanished. 

Presented with limited comment

It's no secret that high-frequency traders and those who employ bad or manipulative algorithms are swimming in pools of money.  Most of these guys making complex statements for computers to follow aren't even financially inclined, most are physicists, aeronautics engineers, and quants looking to impose math upon the world instead of deriving it from the world.  This form of trading has reversed the flow of finance.  At one point the stocks that make up an ETF would move before the ETF.  Now because of the speed at which computers can freeze the stock prices, calculate wh

Global Central Banks agree to another year of access to FRBNY FX Swap Lines

Borrowed money keeping stocks afloat

The Bernank is beginning to wind down his "non-bailout" of Europe.  On 12/14/2011 the Chairsatan himself reportedly told Senator Corker that he had no intentions of furthering the US's involvement in the European Crisis. Coincidently , a few weeks later CNBC interviewed Gerald O'Driscoll who is a previous Dallas Fed Vice President, after he released an Op-ed in the WSJ calling out the FED's European bailout.  O'Driscoll is dead on with his claims and his suspicions about Bernanke's reasoning behind going through the FED market arm to lend USD to the ECB.

Imagine scanning lines and lines of code looking for a specific error which was causing a constant hemorrhage of money through bad trading executions.  Now imagine having a cocktail at a party and discovering through the aid of a napkin drawing exactly what type of order was causing your firm to destroy its Alpha over a consistent 6 month period.  That's the reason we're hammering the table, because it's not merely about reading the information wrong, its about inside connections to the exchanges.  These connections have helped many firms skirt the REG-NMS rules and Rule 610 as exchanges cater to the HFT in effort to garner the most fee's possible.