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Dear Treasury Secretary Lew: Here Is All You Need To Know About HFT
About a decade after the arrival, and subsequent takeover of the market by high-frequency traders...
... 6 years after the start of our crusade to purge the capital markets of the 2nd worst scourge to capital allocation efficiency and fraud, the first being of course the central banks, and 5 years after the flash crash, we just realized that we, and all those others who caution every day against the threat that HFT poses every single day, have finally made an epic breakthrough. To wit:
- LEW SAYS GOVERNMENT TRYING TO UNDERSTAND HIGH-FREQUENCY TRADING
That's right: the US Treasury Secretary is finally trying to figure out what all this buying and selling and buying and selling (repeat that 1 million times in one second) is good for. Well... it was about time.
So to help out Jack Lew on his quest to understand why the market is rigged, and is, as even former SEC directors admit, "two-tiered", we could point him to the full explainer we wrote just for this purpose last April in "High Frequency Trading: All You Need To Know", but since we know US officials have a limited attention span, we will instead direct him to the latest revelation from the revised Virtu S-1 ahead of its second attempt at an IPO (following the massive revulsion to all things vacuum-tuby, market-tuby in the aftermath of Michael Lewis' Flash Boys).
So here, dear Treasury Secretary, is all you need to know about HFT from the mouth of the most dominant HFT market player itself:
The chart below illustrates our daily Adjusted Net Trading Income from January 1, 2009 through December 31, 2014. The overall breadth and diversity of our market making activities, together with our real-time risk management strategy and technology, have enabled us to have only one overall losing trading day during the period depicted, a total of 1,485 trading days...
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And with that, now you know all there is to know about HFT.
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Correction, Jack Lew is being educated on what HFT is all about...$$$$$$$$$$$$$$
Lack Jew makes me miss the Keebler Elf.
Well, maybe not miss.
pods
What you need to know: Without HFT trading all of the exchanges would see 60-70% of their volume disappear, throwing them all quickly into bankruptcy. In other words, Mr. Lew, "drop the gun or the ni**er gets it." Oh, and did I mention they also provide "liquidity"? Good. I didn't want to miss that one. So don't you even THINK of touching HFT.
Uh.... if they're "trying to understand" it, then only one of two possibilities to conclude.
1.) They're very very dumb, as in like a box of rocks with the attention span of a walnut.
2.) They're going to preform a 17 year multi-billion dollar study* to find that HFT's provide necessary liquidity to the markets, don't fuck over the little guy any more than his human counterparts do and um.... ah.... whatever... so.... It's OK.
*to be chaired by Timmah =:()
It's downright awe inspiring how they are working to understand something that everyone who is seriously in the market has understood from day one. I guess Sesame Street needs to have an episode on it , brought to you by the letters F and U,so they can grasp the idea behind it all.
It's easy to understand - the business model is like Visa, a transaction skim but done through illegal means legitimized by their broad adoption and regulatory consent, implied or explicit.
Not skimming, digital pump and dump thousands of times a second.....
Lew will have Treasury conduct a 3 year study, with its results to be released in the 4 quarter of 2019 while meantime his HFT bros at Citi rip it up.
They'll need to bid out for the study which GS will win.......
This dimwit, like all other gubmint non-functionaries, doesn't even understand the laws that circumscribe his responsibilities. Expecting him to understand HFT is akin to asking an amoeba to understand Aristotle's Organon.
Tsk, don't you remember turbo tax Tim Geithner? Economic incompetence is in the job description......
What is Jack Lew's HFT cut, via wire transfer to his Cayman Island shell corporation?
---
Rick: How can you close me up? On what grounds?
Captain Renault: I'm shocked... shocked to find that gambling is going on in there.
Croupier: Your winnings sir.
Captain Renault: [sotto voce] Oh, thank you very much.
Lew is learning who in Obama's donor class is building the biggest yacht and upgrading the Hamptons crash pad.
Guest has absolute meltdown on Fox when questioned about Obama's race record:
http://tinyurl.com/oq9z4qb
A two cent tax on every trade would kill HFTers
And they'd have to go back to regular insider trading.
Completely OT : Any of you hear about Bertha stuck underground in Seattle ? The big mammoth drill. Sounds like a real engineering challenge.
http://www.seattletimes.com/seattle-news/giant-crane-to-lift-4-million-p...
Taxpayers probably not thrilled though.
More DUMBS right under Seattle's over-caffeinated noses. The Annanuki, greys and blondes all have been seen at various times wandering about downtown enveloped in a haze of marijuana smelling cloaking device clouds.
Like uh.... nuffin a see, bro (uncontrollable giggles)
Selective stupidity, they are all infected with it. If Marth Stewart would have just played stupid...
Lesson to you all "I don't know" and "I don't remember"
BREAKING: After a lengthy investigation, Jack Lew steps down to accept position at HFT firm
Don't worry guys! Professor Government is on the case!
Ten years late and about $200 trillion short.
Jack - read ZH. Then go buy some stocks.
London pump off the lows initiated...
all Jack Jew has to do is watch the fucking trading 1 fucking week to see a fucking pattern....
asshole.
Correction: LEW SAYS GOVERNMENT TRYING TO further weaponize HIGH-FREQUENCY TRADING
This could take a while, seeing as how the guy doesn't even know how to sign his name.
Upton Sinclair,
I believe it was Keynes. True no matter who said it. Explains the 'independent' economists and the media whores.
“It is difficult to get a man to understand something, when his masters depend on his not understanding it.”
There, fixed it for you...
Must protect all specialized fraud while claiming ignorance.
The People are sacked!
Sack nation!
This clown understands HFT, as Obama got email from Hillary's private email server, and said he knew nothing about it. Lying POS!
Former SEC Director Rips the Red Tape Off His Mouth
10 March 2015, by Dave Michaels and Sam Mamudi (Bloomberg)
http://www.bloomberg.com/news/articles/2015-03-09/he-went-from-speak-no-...
Arrest him. Exile him to Somalia with the rest of them.
well time for an Obama minion to get a job there... Heck Geithner comany doesn't even have that good track record. What happened on the one day?
Treasury wants to know which Algo to buy and put to work.
Jack, Jack, Jack. The public is well aware that the only reason Treasury is looking into this is because you and your RAT buddies are trying to shake down the Hedgies and Wall Street, in general, in preparation for the 2016 elections. Gonna take a whole lotta cash to put the RATs back on top.
Follow the money and you'll find the truth.
Money is the root of all evil
And Jack wants to get to the root!
And tap it!
A tiny tale from the lands before: remember when GS claimed their perfect records?
A small detour: Deep Blue beats Man a while ago at Chess.
A moment of your time: when a computer makes more money than you do, why have a financial class?
A fragment of reality: the economy is not the world, and a chess board it is not.
If you missed it: HFTs have shown that the economy is no longer a human domain. The trick they're pulling is to own the infrastructure that the HFTs play on.
Rentiers. Sad, once they would have shaped the world and built statues and so on. Now, they're just busy-boys for 101010 they don't even understand.
Some of you here will not agree with this , but the trading floors were not a place for the squeamish to work , particularly if one had a fiduciary obligation to an order in its execution. Only a small percentage of the population had the personality traits to work there - EVERY DAY. The number of people whose lives were upended totally by the scam known as electronic trading is inestimable IMHO. By far there were more honest people on the trading floors than dishonest ; and each of those people were responsible for at least 3 other jobs that someone OFF THE FLOOR had. Ask the people who once held those jobs what they think of electronic trading and its spawn known as HFT. Many of those people will of course have a biased answer , but what we have now is NOT progress NOR is it innovation. Wash selling is a crime for some but seemingly condoned for others under the maker /taker model.