HFT

Some Bad And Some Worse News For Stock Buybacks

For those 17-year-old hedge fund managers used to BTFD on hopes corporate buybacks will "have their back" and provide the bid on which momentum-chasing HFT algos will piggyback, we have some bad news and some worse news.

Historic Volume Surge Forces Deutsche, Morgan Stanley To Shut Down Dark Pools

Following a historic surge in volume after the Brexit referendum, which sent bid/ask spreads soaring and led to a disorderly market at the European open, Deutsche Bank AG temporarily shut off outside market makers in its dark pool, SuperX. The bank told outside market makers that they would be prohibited from trading in SuperX on Friday, until the bank notified them it was ready to resume. Morgan Stanley’s dark pool was likewise turn "off" this morning as ATS operators scrambled to make sense of the broken market.

HFTs Lose: IEX Granted Exchange Status As SEC Says The Speed Race Is Over

"The Staff acknowledges that market participants using the most sophisticated technology may today encounter access delays of substantially less than one millisecond when accessing the quotes of a single exchange whose data center is co-located with their own or located nearby.  However, even the most technologically advanced market participants today encounter delays in accessing protected quotations of other “away” automated trading centers that can substantially exceed one millisecond, that either are transitory or permanent."

Theft Of Opportunity - The Impact Of Reg NMS On The Retail Investor

Regulation NMS made its first major impact with the introduction of “Payment For Order Flow”, which when paired with sub-penny pricing, is now directly responsible for birthing a new gold rush within the capital markets. The dawn of the High Frequency Trading (HFT) community we witness today. The result of this policy is an insurmountable, unequal, and unjust advantage for self-dealing BD’s and HFT’s, at the expense of the market’s retail level investors.

Deutsche Bank Throws In The Bullish Towel, Says "Next 5% Move Is Likely Lower"

With Morgan Stanley, JPM, BofA and even Goldman Sachs having thrown in the towel on the ongoing stock market ramp, inspired in equal part by HFT momentum strategies, central banks, and a relentless short squeeze, Deutsche Bank's equity strategist, who until now valiantly was cheerleading to bullish case, has finally waved the white flag of surrender and in an overnight note admits that "the 5% move is likely lower."

Stunning Emails Reveal How Clinton Foundation Donor Bought Seat As Hillary's Nuclear Weapons Advisor

A new trove of State Department emails reveal how a major Clinton Foundation donor - and HFT trader - was placed on a sensitive government intelligence advisory board even though he had no experience in the field. The emails further reveal how, after inquiries from ABC News, the Clinton staff sought to “protect the name” of the Secretary, “stall” the ABC News reporter and ultimately accept the resignation of the donor just two days later.

Sterling Volatility Explodes To Record High As Brexit Looms

With two polls being unleashed on the markets today indicating the largest lead for Brexit over Bremain yet with regard the UK referendum, it seems FX traders at least have begun to wake up to the short-term uncertainties a "leave" vote may entail. A short-term measure of expected price swings for the pound climbed for a third week as traders sought protection as two-week implied volatility, a period that covers the June 23 voting date, closed at its highest on record today.

The Simulacrum Market: "Unfilled Gaps Must Never Be Filled"

This is what happens when you strip out volatility and game the system: the system loses all natural resiliency and becomes increasingly brittle and fragile. By making the stock market the only game in town, the Powers That Be can no longer afford to let it decline for any reason.

"We’re Moving To Tackle Systemic Risk" - India Cracks Down On HFT Scourge

While the corrupt and criminal US regulators are unable to do anything to stifle the market domination of algos which have totally destroyed the US equity market, and sucked up enough liquidity where neither buy nor sellsiders can generate a profit, India is already well on its way to crushing the parasitic - and perfectly legal - frontrunners of virtually ever trade. It will do so by increasing penalties on high-speed trading firms that flood exchanges with orders that don’t result into actual transactions, as part of steps aimed at strengthening its oversight of computerized trading.

The CME Admits Futures Trading Was Rigged Under Old System

CME Group Inc., the world’s largest exchange operator, just completed an upgrade traders said would eliminate a shortcoming that gave some participants an advantage. Under the old system, data connections that linked customers to CME -- where key products like Treasury futures and contracts tied to the Standard & Poor’s 500 Index trade -- had noticeably different speeds, opening up the potential for gaming, according to traders and other experts. Those who knew how to gain faster access could increase their odds of being first in line to trade.