Earlier today we told [5] (or more appropriately “retold,” because we called [6] 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 [7] 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...
