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Market Is Rigged, HFTs Are Harmful, And Nothing Will Change According To ConvergEx Survey
Earlier today we told (or more appropriately “retold,” because we called it for what it was right after it happened two years ago) the story of a Citadel algo gone rogue that inadvertently played havoc with the E-mini on June 3, 2013. Thankfully, the penalty was stiff for the world’s most highly leveraged hedge fund as the CME doled out a massive $70,000 fine which we suspect someone at the firm probably paid with the cash they were carrying in their wallet. It’s incidents like this — and “flashy” bestsellers — that have a nasty habit of shifting perceptions which is why we weren’t surprised to see the results of a market structure survey conducted by ConvergEx:
At this time we are pleased to share the results of our recent U.S. Equity Market Structure Survey, the results of which show both displeasure in current market structure and a desire for change. Our survey found that a majority of financial industry participants believe that the U.S. equity markets are unfair and that HFT is harmful.
Here's a breakdown of the respondents...
...who think the US stock market is rigged...
...by a legion of harmful algos...
...but there's no point in altering strategy because nobody can do anything about it...
...but if an "accident" happens...
....we're all screwed.
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This was as of April, 2014. To view the latest data, see here.
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think gravity
I feel sorry for the ignorant people who complain about High Frequency Trading as if it somehow puts them at a disadvantage. Many of us who are part of the Venus Project believe that, to the contrary, HFTs are necessary and will eventually develop into a single hyper intelligent capital allocation algorithm that will give everyone on earth what they need, when they need it, so we don’t have to work. We have the resources and technology to provide food and shelter to everyone on earth, so work should be a thing of the past. It’s funny to me to see people complain about ‘market manipulation’ when these algorithms could literally save the planet and the future of humanity.
<-- Forgot the /sarc tag
<-- Completely clueless
You think?
An algo could do that however they are written for and by people to make as much money for them as possible. It's not the technology that's evil it's just the same dickheads spoiling the party as it ever has been. They just use different tricks now.
The Venus Project: The talent search for the most attractive, nubile young ladies to repopulate the earth after the collapse.
Fuck you.
I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... www.globe-report.com
I don't understand the surprise. Rigged is just another word for Centrally planned.
Polls are notoriously unreliable, except this one.......
38% of people confident, and 22% neutral, the market could handle a large geo political crisivolatility shock.
I am sure the same amount of beach goers on the beaches of the Indian Sea before the tsunami of 2004 hit.
The animals knew it was coming, though.
don't worry about this little stuff. hillary is going to be president and everything is going to be AWESOME!
<sarc/>
It wasn't designed for market liquidity.
It was not designed for handling a market problem.
It was designed for firm profits and it is reaching its goals....
To think otherwise is just plain stupid.
these results were collated via HFT software routing
for every 10 voters that said something negative, their answers were first sold to the market, bought back, and only 9 returned to the results pool as negative
The system is boobytrapped . You cannot fix it without blowing it up . Enough of this talk about 'change ' !
The HFT debate hasn't changed the way I interact with the equity markets. I wouldn't touch them with a bargepole.
Dear ConvergEx, You can get the same info, years ahead, without having to do a survey...just read ZeroHedge.
P.S. Your charts are ugly.
I heard a similar-sounding opinion piece today on Bloomberg about Obamacare.
Yeah, the wag said, everybody knows it's expensive, wasteful and ineffective. But hey, it's the law of the land now and nobody, least of all the Republicans, are going to change that. So get used to it.
Looking at how irrationality rules human behavior, it's no surprise that people like Freud theorized the existence of a death wish...
We are part of history - we are the very last generation of retail investors.
RIP
Hold all orders for at least one trading day before processing - what are the chances of the criminals accepting this?