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Europe Probing HFTs For Providing "Fake Liquidity"
Not a day passes without some HFT company being charged (and slapped on the wrist) for rigging this market or that, or without some lie about the "benefits" of High Frequency Trading being blown to oblivion. Of these lies, none is of course bigger than "HFT's provide liquidity." But even that may be about to end. Enter the European Union, which is investigating "whether high frequency traders provide liquidity that benefits financial markets as a whole."
Presenting Fake Liquidity, which is truly the best way of describing what the algos of Citadel, Virtu, GETCO and other market manipulative players do.
From Bloomberg:
The EU’s financial watchdog, the European Securities and Markets Authority, will look at whether automated trading adds fake, or ghost, liquidity to markets, said Steven Maijoor, the regulator’s chairman.
“There has been a suggestion that the liquidity they are providing is not real liquidity because once you would like to go into the trade and accept an order the offer disappears,” Maijoor said in an interview in Hong Kong on Jan. 20. “We are looking now into the specific issue of what is called ghost liquidity.”
Hmmm: we wonder who could have possibly said that first some 6 years ago, when anyone daring to say that was branded - what else - a crazy conspiracy theorist?
The study by ESMA’s economics unit adds to a global research effort into the effect that computerized trading is having on markets. HFT firms have used their powerful computers and super-fast networks to make themselves the main providers of liquidity in many markets around the world.
“There is a heightened supervising attention,” Maijoor said. “We should have proper rules in place for high frequency trading. But at the same time, we don’t think it is a priority or something that should be banned or that should be stopped.”
Then again, when we said "it is about to end" we assumed a fair, unrigged regulatory system. Alas, in today's world, where HFTs are a critical cog of the market manipulation scheme (just ask the NY Fed whose PPT interventions would be impossible without that HFT titan Citadel), and whose lobby has nearly endless influence over the crony and corrupt farce that is the SEC, sadly HFTs will continue to dominate and rig stocks at least until the next mega crash wipes out the fake "bull market" of the past six years.
Then, and only then, will everything be blamed on HFTs.
Until then, enjoy your rigged "made for muppets", and suffused with fake liquidity markets.
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These are the same SOB's pushing QE as a "Fix".
If you understand that these are the rules of the "Game" then why not participate and BTFD? Why should they be the only ones to accumulate wealth?
Beacuse once the retail investor is all in, the floor falls out.
Please tell me when that will be. Next month, next year, next decade? I will continue to join the 1% bastards.
Edit:
If ECB injects $50B a month how much do you think will flow into stocks? How much do you think will wetback it across the Pond and wash ashore in Wall Street?
Because there's no way you're quicker than Johnny-5.
Who are the regulators kidding? They know how important Skynet is to the illusion of prosperity. They just want a piece of the action n
Exactly, expect a payoff settlement without any wrong-doing. Only the little guy will get nailed for bait and switch orders (aka Ghost Liquidity), which has been illegal since what, the 1930's?
"I'm shocked. Shocked, I tell you, to find out there is gambling going on in this establishment."
Gambling? Yeah sure in the sense that it is a rigged casino and the players eventually realize it is and finally stop playing altogether. How long can you keep spinning a roulette wheel or dealing the cards when no one is playing? Until the bills come due and the electricity goes off.
Citadel is really Citadevil.
Yeah... but it where the European nations and even Nato who sold the microwave towers to HFT firm to start their business and steal from the retail investor in the first place...
When you were a kid did you ever borrow your mom's car and tell her you were going to be driving your friends to the library to study.... but you actually went to a party? Like that. But with microwave towers.
Nato sold those towers in july!
http://www.bloomberg.com/news/2014-07-15/wall-street-grabs-nato-towers-i...
And nop, I never got the car :) but my father back in the day was like my personal taxicab on demand whatever the hour :)
And my father was a cool guy, when I was 16 he told me: don’t wake me up before 6h!
And I never did... :)
wow probing yourself, kinky
Why of course the HFT's are there for the benefit of the financial markets! Everybuddy knows dat!
A little "after the fact"? All the players have left the game/casino to start their own exchange/gentlemans club.
Fidelity, other major fund managers to launch stocks dark pool | Reuters
I predict Barclays will be the first major sacrificial lamb to be slaughtered
It's always serious to an algo, so they have to lie.
So now that the money is no good "fake trading is bad." Got it.
“There has been a suggestion that the liquidity they are providing is not real liquidity because once you would like to go into the trade and accept an order the offer disappears,”
So, something that never existed can disappear.
So, if matter can’t disappear ….. does it really exist?
The bottom line is that Highly Fraudulent Transactions are very profitable.
Therefore they exist and will never disappear!
First Law Of Financial Physics.
Once again, gubbamant acts as the solution, when really gubbamant is the fucking cancer.
HFTs don't provide liquidity. HFTs, because the execute much faster than us regular folk, can set buy and sell orders above the market and execute while the markets goes full retard at some lower price. HFTs lead the market.
This is why we see these massive fucking lower shadows on morning plunges - like this morning.
CME said they pulled HFTs last September. ICE said no more HFTs on January 14. But it appears that HFTs are still here - Yellen the pig + HFTs with Barry pulling the strings means that fucking communist in the white house is controlling this market - a useless community activist lawyer is in control. FUCKING HELL!!!
So Steven from Europe, keep looking for shit we already know you won't find and when you get a moment, go fuck yourself!!!!!!!!!!!!!!!!
It took a book and a 60 minutes segment for the SEC to learn about it, blame it on the booktour scheduling not the ESMA.
Someone doesn't understand what liquidity is.
Andpoofitsgone!
made for muppets
LMAO