Who doesn't notice a huge deletion in one changeset? This seems to be a convenient excuse. The SEC report.
High-Speed Trading Firm Deleted Some Code by Accident
21–30 of 63 posts
Re: High-Speed Trading Firm Deleted Some Code by Accident
#22The best part of this article is the feature graphic, that of a castle with the caption: THIS IS A TOWER. PHOTOGRAPHER: DAMIEN MEYER/AFP/GETTY IMAGES The article mentions "Tower Research". Is the image/caption a joke, auto-generated by content, or just plain laziness?
It's a joke, consistent with Matt Levine's writing style. See for example the image and caption for his article on Panda Express: http://www.bloombergview.com/articles/2015-09-24/panda-expre...
Re: High-Speed Trading Firm Deleted Some Code by Accident
#23Earlier quoted context omitted.
Basically imagine you want to buy apples from 3 different fruit stands in different parts of a city. Fruit stand 1 is the cheapest, fruit stand 2 is the 2nd cheapest, and fruit stand 3 is the third cheapest. You want to buy all the apples out there. The rule is that you have to go to the cheapest fruit stand first, and exhaust their supply before moving onto the next cheapest fruit stand. If you want to go to ALL the…
Why does the SEC care that you bought shares at a price higher than the cheapest? How does that hurt anyone other than yourself?
And relatedly, what is the point in the existence of multiple markets, if not that you can choose which market to trade on for your own technical–logistic reasons?
Re: High-Speed Trading Firm Deleted Some Code by Accident
#24Earlier quoted context omitted.
Basically imagine you want to buy apples from 3 different fruit stands in different parts of a city. Fruit stand 1 is the cheapest, fruit stand 2 is the 2nd cheapest, and fruit stand 3 is the third cheapest. You want to buy all the apples out there. The rule is that you have to go to the cheapest fruit stand first, and exhaust their supply before moving onto the next cheapest fruit stand. If you want to go to ALL the…
Why does the SEC care that you bought shares at a price higher than the cheapest? How does that hurt anyone other than yourself?
These rules apply when you are trading with money that is not yours - as a fund manager, hedge fund trader, broker etc.
Intermediaries make up 99.9% of the market because very few individuals would bother paying to connect to a dozen stock exchanges if the can pay a broker a few bucks to do their trade instead.
Re: High-Speed Trading Firm Deleted Some Code by Accident
#25Can someone explain why the SEC rules insist you must buy from the exchange with the lowest price first? It appears to me to be a rule just to keep the small exchanges alive.
Re: High-Speed Trading Firm Deleted Some Code by Accident
#26Every time I read stories about high speed trading, I have to wonder what is actually the point of high speed trading to the society. The point of a free and fast stock market is to provide monetary liquidity and stabilize the economy by shortening the feedback loop. But something tells me that our society and economy derives zero benefit from nanosecond resolution trading vs. trading with say 1 minute resolution. Me…
I don't think high frequency trading increases the probability of dangerous swings. I don't know if they add any value, but I doubt they cause all the problems people blame on them. When they do start doing something stupid, then they will lose money and be punished and other traders will profit from them.
Re: High-Speed Trading Firm Deleted Some Code by Accident
#27Earlier quoted context omitted.
Basically imagine you want to buy apples from 3 different fruit stands in different parts of a city. Fruit stand 1 is the cheapest, fruit stand 2 is the 2nd cheapest, and fruit stand 3 is the third cheapest. You want to buy all the apples out there. The rule is that you have to go to the cheapest fruit stand first, and exhaust their supply before moving onto the next cheapest fruit stand. If you want to go to ALL the…
Why does the SEC care that you bought shares at a price higher than the cheapest? How does that hurt anyone other than yourself?
The person offering the cheaper price is hurt, because someone offering a worse price is getting filled before him. Essentially, the moral argument of Reg NMS is to enforce price-time priority in a distributed system. Whether it actually accomplishes that is...well, I'll leave that up to you to decide.
Re: High-Speed Trading Firm Deleted Some Code by Accident
#28Earlier quoted context omitted.
Basically imagine you want to buy apples from 3 different fruit stands in different parts of a city. Fruit stand 1 is the cheapest, fruit stand 2 is the 2nd cheapest, and fruit stand 3 is the third cheapest. You want to buy all the apples out there. The rule is that you have to go to the cheapest fruit stand first, and exhaust their supply before moving onto the next cheapest fruit stand. If you want to go to ALL the…
Why does the SEC care that you bought shares at a price higher than the cheapest? How does that hurt anyone other than yourself?
If I ask my broker to buy some stock, I want it at the lowest price. My broker, left to his own devices, may prefer to buy at a higher price because it is more profitable for him.
This rule seems designed to protect the consumer when the consumer and the stock brokers goals are not aligned.
Re: High-Speed Trading Firm Deleted Some Code by Accident
#29Every time I read stories about high speed trading, I have to wonder what is actually the point of high speed trading to the society. The point of a free and fast stock market is to provide monetary liquidity and stabilize the economy by shortening the feedback loop. But something tells me that our society and economy derives zero benefit from nanosecond resolution trading vs. trading with say 1 minute resolution. Me…
I don't think high frequency trading increases the probability of dangerous swings. I don't know if they add any value, but I doubt they cause all the problems people blame on them. When they do start doing something stupid, then they will lose money and be punished and other traders will profit from them.
the premise is they might add value in some circumstances, but in the mean time they extract value 24/7
>When they do start doing something stupid, then they will lose money and be punished
hehe no, trades will be reversed, people that "maliciously took advantage of poor algo error" will be punished instead
Re: High-Speed Trading Firm Deleted Some Code by Accident
#30Move fast. Break things. Pay millions of dollars in SEC fines.