221–230 of 237 posts
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Who is subsidizing the HFT market makers so that they can undercut the rest of the market on their private exchanges?
This is like a question from a markov generator. I won't try to answer it.
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Are you saying that there is a special market operating in the NYSE that some traders cannot access? Why would my order not be eligible for being matched, but a HFT's would? Edit: wow, rate limited after three posts this morning. A new HN low. My response to tptacek below: My dumb order? How can HFT's intercept and redirect my trades to their, appently, captive pool of dumb trades? Sure sounds like multiple markets a…
Oh boy, you got this 100% the wrong way around. As a small trader, you get access to special lower prices that a hedge fund can't get. Your broker will be routing your order to a wholesaler who will fill it at lower prices (ie, narrower spreads) than you would get on the open market, because they have a legal obligation to not screw you over. You can request that they route it to anywhere you want, and they are legal…
What he's saying there was that due to inefficiencies in NYSE's infrastructure, the feed that went to the consolidation (which provides the NBBO) was delayed. Firms were able to then exploit those inefficiencies by dumping a ton of quotes into the market to cause it slow down those feeds. This is called quote-stuffing and is illegal and against exchange rules. (I don't know if this was illegal then.) From a technical…
Do you work for the SEC? Because only the SEC knows what I sent them. If you do work for the SEC, then you have some explaining to do. If you don't work for the SEC, you have some explaining to do. I thought Hacker News was a place for logic and reasoning. Yet it is so easy to pick these inconsistencies out. Why do you suppose that is?
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Where to begin. The retail investor gets the slowed down price (the NBBO is really what the internalizer/wholesaler saw from the SIP when they executed your order). That same internalizer buys/sells from the faster feed. Whenever the two feeds are out of sync, it's like printing money. "The price for getting a direct line is not unreasonable?" I just laughed out loud reading that. Is $60,000/month for just one exchan…
What would be your proposal for a solution to a sync'd feeds obvious distributed systems problems? How much latency would be acceptable for a fully consistent, high throughput distributed log of events, that when it becomes unavailable the entirety of US trading shuts down and if it ever gets out of order can cause gigantic lawsuits? How would you change the obvious organizational disincentives as well? Given that ma…
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That's not true. Even people who don't like Hunsader's analysis (and there are lots of those people) tend to acknowledge that his operation generates good data.
I agree with the previous poster. As someone who works in the field, I find a lot of the analysis very conspiratorial when often the correct explanation is somebody had a bug. "Never assume bad intentions when assuming stupidity is enough" -- Hanlon's Razor
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What would be your proposal for a solution to a sync'd feeds obvious distributed systems problems? How much latency would be acceptable for a fully consistent, high throughput distributed log of events, that when it becomes unavailable the entirety of US trading shuts down and if it ever gets out of order can cause gigantic lawsuits? How would you change the obvious organizational disincentives as well? Given that ma…
You are making straw man arguments. While I'm happy to discuss what the SIP should be in an ideal world, the topic at hand is what is current law. For those that don't know, it's Reg NMS (google it).
So essentially the NYSE is a provably fixed game, with large HFT houses paying for the right to trade on non-public information, and it hides behind the idea that it was just a few hundred milliseconds. All the while they are selling non-public information as a product that is deliberately used to micro-manipulate the market? I mean, deep down I always knew this, but to have it all spelled out is shocking because it…
So, no? From 2008-2012, if you paid NYSE (one of like 15 different exchanges that trade NYSE-listed stocks) for a proprietary feed --- something that costs more than most idle home day traders can afford, but would be affordable by any YC startup --- you were getting an edge in competing with other electronic trading systems . If you were a retail investor or a mutual fund, what NYSE was doing probably didn't impact…
ABSOLUTELY. POSITIVELY. Impacted retail investors and mutual funds.
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So, no? From 2008-2012, if you paid NYSE (one of like 15 different exchanges that trade NYSE-listed stocks) for a proprietary feed --- something that costs more than most idle home day traders can afford, but would be affordable by any YC startup --- you were getting an edge in competing with other electronic trading systems . If you were a retail investor or a mutual fund, what NYSE was doing probably didn't impact…
In 2010, internalizers ABSOLUTELY, WITHOUT QUESTION, priced retail investor orders with SIP prices (the feed that got way behind). What the NYSE was doing: ABSOLUTELY. POSITIVELY. Impacted retail investors and mutual funds.
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In 2010, internalizers ABSOLUTELY, WITHOUT QUESTION, priced retail investor orders with SIP prices (the feed that got way behind). What the NYSE was doing: ABSOLUTELY. POSITIVELY. Impacted retail investors and mutual funds.
Shouldn't internalizers be required to use direct feeds instead of the SIP? The SIP, by construction, will always be lagging the 'real' (if that even means anything) NBBO.
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I don't see a need to pretend that retail investors trade directly on an exchange to show harm. The reason that some firms pay for access to current information is that it gives them an advantage. An advantage against whom? Is this only a matter of HFT firms trading against each other, and they all have access to the same info? Or, is the info asymmetric and someone is disadvantaged in a trade? I have to think that a…
> Or, is the info asymmetric and someone is disadvantaged in a trade? There is no expectation in the markets that everyone is working with the same information, quite the contrary, the markets wouldn't provide value if everyone was working with the same data. One of the chief reasons the markets are valuable is that they give people incentives to surface (in the form of market activities) pricing information they mig…