This page has been archived and commenting is disabled.
HFT Update
We have written extensively on the HFT Algoritmic Machines trading the Markets. The pale argument of the machines providing liquidity is as stupid as ever. Yes, HFT machines trade a lot, and make up an increasing part of daily trading volume, but it is not increasing liquidity and it is not promoting protecting the average Joe's orders etc.
During last week's trading, Nasdaq almost hit the maximum amount of data it can process, before the system shuts down. This is due to the fact the HFT machine's different predatory strategies such as quote stuffing etc slow up the system and give them an advantage over the average Joe. The trader has argued, for the HFT ultimately being the single most important factor in the markets ultimate collapse, as they will drive the liquidity to low levels while all trying to execute similar strategies. Below some HFT update from Bloomberg;
The stock market’s fastest electronic firms boosted trading threefold during the rout that erased $2.2 trillion from U.S. equity values, stepping up strategies that profit from volatility, according to one of their biggest brokers.
The increase from Aug. 1 to Aug. 10 over their 2011 average surpassed the 80 percent rise in U.S. equity volume, showing that high-frequency traders made up more of the market during the plunge, Gary Wedbush, executive vice president and head of capital markets at Wedbush Securities, said in a telephone interview. Wedbush is the largest broker supplying bids and offers on the Nasdaq Stock Market, according to exchange data.
“We’re seeing a tremendous amount of high-frequency trading,” said Wedbush, whose company is one of the biggest execution and clearing brokers catering to high-speed firms. “Their business is a trading business, and volatility creates far more opportunities. Some of their algorithms and automated systems are trading two, three or five times as many shares as they would have in a more normalized volatility environment.”
and the fallacy of providing liquidity;
“The bulk of high frequency traders are adding liquidity to the marketplace,” Wedbush said. “Automated traders employ a myriad of strategies that seek to profit from a stock’s short- term volatility, but the mass of HFT is adding liquidity by being on both sides of the market or doing creation/redemption arbitrage for ETFs.”
Our view is that the HFT Algo machines will cause the ultimate collapse of the Markets. The system has been feeding of a lack of regulation, and therefore we see many of the HFT machines simply conducting a regulations arbitrage. Due to lack of understanding and a huge lobby organization, the regulators and exchanges are simply not in the position to implement the relevant regulations. Arguments of providing liquidity etc are never challenged and become the truth, without further questioning. The ones providing the arguments are depending on the HFT firms paying the bills. Welcome to free markets.
Full HFT Update from Bloomberg.
BOE provided an interesting piece earlier this year;
The Flash Crash left market participants, regulators and academics agog. More than one year on, they remain agog. There has been no shortage of potential explanations. These are as varied as they are many: from fat fingers to fat tails; from block trades to blocked lines; from high-speed traders to low-level abuse. From this mixed bag, only one clear explanation emerges: that there is no clear explanation. To a first approximation, we remain unsure quite what caused the Flash Crash or whether it could recur.1
That conclusion sits uneasily on the shoulders. Asset markets rely on accurate pricing of risk. And financial regulation relies on an accurate reading of markets. Whether trading assets or regulating exchanges, ignorance is rarely bliss. It is this uncertainty, rather than the Flash Crash itself, which makes this an issue of potential systemic importance.
For some insight by at least one of the regulators that seem to address the problem, click here.
»
- advertisements -
As consumers, we have seen just one side of Mulberry Tasker Outlet, the finished Mulberry Pung.The Louis Vuitton Mahina Leather,Louis Vuitton Mini Lin dropped today on Net-A-Porter and that i believe you need to take another go through the Mulberry Del Rey-2012,Mulberry Bayswater.All are directly from the Mulberry Tasker Danmark,Louis Vuitton Luggage with all the superior quality and the most competitive price on your choice.Over these months,the G-star Tapered Men Jeans,Louis Vuitton Damier are more demand compared to others in Uk.I adore her Mulberry Outlet.Truth be told,The summer time is a bit of a slow news period in fashion, naturally, and mailing a highly-timed blog post with a lot of photos along with a very clear narrative about G-star Cropped Women Jeans should indeed be an excellent way fill most of that empty summer space on fashion sites along with your company's pieces.Particularly for G-Star Uk that wasn't carried by any big international tastemakers that we can remember, other that normal Louis Vuitton Multicolore and g star jeans uk.The highest thing considering that the Louis Vuitton Nomade Leather.Louis Vuitton Ebene has designed several hits.People just like the design with the newest bags with all the best price.Moreover,they have got the good and fresh feeling once they carry the lastest bags on the street.They may be free shipment,no sale tax,high reputation in Mulberry Outlet.We have Louis Vuitton Suede on without anyone's knowledge while Doing work often and that i totally like Mulberry Tasker, a well known fact which That's not me even gonna deny.Louis Vuitton Uk might be simple to forget that there's human ingenuity behind every bag and two of Louis Vuitton Wallet,Mulberry Tasker århus.there are a variety of choice of jeans as:Louis Vuitton Sofia Coppola,Louis Vuitton Handbags.What types of Louis Vuitton Suhali Leather do designers enjoy designing.Louis Vuitton Leather look back on most fondly.A sizable quantities in our New Style G-star Hoodies,Mulberry Cookie Tasker-2012,Louis Vuitton Cruise are directly from the Mulberry Tasker,Mulberry århus,Louis Vuitton Epi Leather.G-Star Jeans is a prophecy which can be made self-fulfilling, or could it be just optimistic.G-Star Online is a new "it" girl, and today G-star Straight Leg Women Jeans,Louis Vuitton Bags,G-Star Sale,Mulberry Alexa come with an eponymous Louis Vuitton Damier Graphite-Initials,Cheap G-Satr,Mulberry Holdall,Mulberry Tasker-2012,Mulberry Briefcase to prove it.We covered these Louis Vuitton bags ebay,Louis Vuitton Belt when it was first seen.Where do ideas result from.How must designers decide a trend of Louis Vuitton bags Sale is right for their work.Even during the democratized arena of Mulberry Tasker københavn, the creativity Louis Vuitton Outlet which are into making fashion inspiration wake up will still be relatively shrouded in secrecy. Everything that seems a lttle bit effusive.Your second coming with theLouis Vuitton Sale.Theg star jeans sale debuted for the brand's website, and simultaneously, a number of fashion sites dubbed it the next G-star Loose Jeans For Women.a month or more ago, something curious happened.Let us take a review of how Mulberry Messenger Tasker sausage is done
From the Freakonomics blog:
http://www.freakonomics.com/2011/08/12/the-markets-are-mad-is-high-frequ...
What about the billions they are sucking out of the markets? Why doesn't that make the markets fall in price? Or is it made up by government quantitative easing?
Now that QE has ended wonder how much of the drop in the S&P is due to the wealth sucked out of the system by these leeches.
Tick Rate Hits New Highs, Indicating HFT Activity
Traders Magazine Online News, August 12, 2011
James Armstrong
Bloomberg is reporting an unprecedented number of quotes in recent days, rising to new highs on Wednesday even as overall volume was down slightly, an indication of unfilled orders and the likely presence of active high frequency traders.
“The tick volume is up dramatically, when the actual volume of shares traded isn’t at the highest levels that we’ve seen,” Nagrath said. “Every time an order goes out, even though it’s canceled, for us it counts as another tick, another quote.”
Wednesday set an all-time high of 43.7 billion ticks. That was about one and a half times the number of ticks recorded during last year’s flash crash. Yesterday, data showed about 38 billion ticks, according to Bloomberg.
Click for chart <------------ Great PDF Chart of Ticks 2008 Fincial Crash / Flash Crash in 2009 / Japan Tsunami as well in this chart for comparison.
http://www.tradersmagazine.com/news/ticks-hfts-trading-volumes-108026-1.html?ET=tradersmagazine:e979:55405a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=tm_weekly_081211
Unfortunately Bankster owned DC and Corp Media are there to disinform.
Nationalize the Fed. Sieze assets of JP Morgue, Goldman Sucks et al. Clawback! Clawback! Clawback!
Make worthless ALL CDOs. Actually ALL derivatives that have absolutley 0 value. These are just bets on bets on controlled captive markets. These Rothchild families are now considered BROKE. No Oligarchs yippieee!
TAX ALL WALL ST transactions. If one exists.
Start a national jobs program with HIGH WAGES
Repeal NAFTA & GAT. TAX All IMPORTS from China BYE BYE Walmart, Apple. The small Mom & Pops ARE BACK Baby! THE REAL JOB CREATORS
Limit individual Assets to 1 Billion. No more ultra wealthy fucking with soveriegn countries. Bye BYE Cock Brothers!
Any Thoughts free market A holes?
Two thoughts-
1) We havent had a free market in so long few remember what it looks like, so returning to it might be a good idea. The crony capitalism we have had for decades is no more free market then the centrally directed lunacy you advocate.
2) You seem to be a bit of an authoritarian idiot. Its unfortunate that your survival strategy is that of a two legged flea, maybe if you start looking at life in terms of finding a way to get by on your own instead of waiting for centralized power to rescue you you wouldnt be such a twerp. Trying to limit what people can have is nothing but the envy of a typical type B leftist idiot.
http://www.youtube.com/watch?v=Xoglm_HcPzs
The S.E.Cs 3.87 trillion dollar lawsuit
and for the Falsh Crash??
EVERYONE KNOWS WHY IT HAPPENED!
Washington DC was pushing for regulation in the Derivatives Market..
after the Flash Crash.. NOT A FUCKING WORD!
Look at the time lines and figure it out!
Congress and the Senate did! LOL!!
http://agoracom.com/ir/CMKM/forums/discussion/topics/207582-cmkm-diamonds-q-a-update/messages/796561
http://cmkm.189025.free-press-release.com/
http://www.ripoffreport.com/investment-brokers/cmkm-diamonds/cmkm-diamonds-u-s-securities-67587.htm
This is the ultimate betrayal of 'price discovery'. Its all false flags and mirrors from those who have a front seat in WS, those TBTF shills. Anybody who says that the FED's ZIRP policy that feeds the kleptocracy, the speculative beast, the USD carry trade, the HFT trade, like it does the OTC derivatives on a mega scale, is also helping the world capitalist system needs a lobotomy. The market is now getting lobotomised so the road to foggy bottom is now charted. TY US of A and your ponzi 'free, invisible handed market'.
The world has to walk away from it through ultra regulation, boycotting these shills, changing the reserve currency and letting the ponzi burn when push comes to shove in market place; when the last chairs in the musical chairs game disappear.
Lets hope the world wil have the courage to walk away. All those who are not party to this race to bottom.
By definition u cannot have your reserve currency become a funding currency. Move along.
yo falak ,
lucid thoughts for the end of the weekend...
our boy is on fire! love all of his stuff that I have read!
charlie dont surf!