Spoofers Tricked High-Speed Traders by Hitting Keys Fast
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Spoofers Tricked High-Speed Traders by Hitting Keys Fast
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Re: Spoofers Tricked High-Speed Traders by Hitting Keys Fast
#2I'm not even sure if I would consider this fraud (personally).
I mean, if the initial outstanding orders were at risc of actually being bought and he had to deliver, then I think it is just fine that the market is naive enough to judge the worth of a company on some anonymous seller, rather than company performance and market-place condition of said company.
What's next, you start moving stock prices through twitter bots?
I think stock traders should be punished by the market place for acting on poor signals and acting like sheeps.
If he could in fact not deliver the initial sales, then not only is it fraud, but it is a broken system that allows you to put up stuff for sale that you don't own.
Re: Spoofers Tricked High-Speed Traders by Hitting Keys Fast
#3I'm not even sure if I would consider this fraud (personally). I mean, if the initial outstanding orders were at risc of actually being bought and he had to deliver, then I think it is just fine that the market is naive enough to judge the worth of a company on some anonymous seller, rather than company performance and market-place condition of said company. What's next, you start moving stock prices through twitter…
It's an odd situation, for sure. After all, these share orders were being entered by humans and could have been sitting in the market order books for several seconds. In that time, anyone could have taken their orders. So they really were genuine offers to sell and buy shares.
Compare that to high frequency traders where it is alleged that 'flash' market orders are submitted and cancelled so fast that no-one could actually take them. How can that be considered OK and yet these human traders are labelled fraudulent?
Re: Spoofers Tricked High-Speed Traders by Hitting Keys Fast
#4I'm not even sure if I would consider this fraud (personally). I mean, if the initial outstanding orders were at risc of actually being bought and he had to deliver, then I think it is just fine that the market is naive enough to judge the worth of a company on some anonymous seller, rather than company performance and market-place condition of said company. What's next, you start moving stock prices through twitter…
It's an odd situation, for sure. After all, these share orders were being entered by humans and could have been sitting in the market order books for several seconds. In that time, anyone could have taken their orders. So they really were genuine offers to sell and buy shares. Compare that to high frequency traders where it is alleged that 'flash' market orders are submitted and cancelled so fast that no-one could ac…
That's exactly what I was thinking. When high frequency traders are doing it it's OK but when this guy tricks them into actually taking some risks it's fraud.
Re: Spoofers Tricked High-Speed Traders by Hitting Keys Fast
#5Earlier quoted context omitted.
It's an odd situation, for sure. After all, these share orders were being entered by humans and could have been sitting in the market order books for several seconds. In that time, anyone could have taken their orders. So they really were genuine offers to sell and buy shares. Compare that to high frequency traders where it is alleged that 'flash' market orders are submitted and cancelled so fast that no-one could ac…
That's exactly what I was thinking. When high frequency traders are doing it it's OK but when this guy tricks them into actually taking some risks it's fraud.
I think the only evidence for fraud here are the recordings of the people discussing their aims of manipulating the markets. If those didn't exist then it does sound like the trades alone could never be considered market manipulation.
If that is the case, am I breaking the law if I just buy some shares and, during the phone call with my dealer, make a comment that I hope my share purchase drives the price up?
Re: Spoofers Tricked High-Speed Traders by Hitting Keys Fast
#6Can someone explain to me why this is illegal?
Re: Spoofers Tricked High-Speed Traders by Hitting Keys Fast
#7I'm not even sure if I would consider this fraud (personally). I mean, if the initial outstanding orders were at risc of actually being bought and he had to deliver, then I think it is just fine that the market is naive enough to judge the worth of a company on some anonymous seller, rather than company performance and market-place condition of said company. What's next, you start moving stock prices through twitter…
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Re: Spoofers Tricked High-Speed Traders by Hitting Keys Fast
#8Can someone explain to me why this is illegal?
He tried to manipulate the market to take an advantage of the shift: http://en.wikipedia.org/wiki/Market_manipulation
You are not allowed to do this if you are a simple guy from the street.
Re: Spoofers Tricked High-Speed Traders by Hitting Keys Fast
#9The stock market doesn't seem to be a very well designed game if such simple moves have to be made illegal.