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Nanex Gets $700k Whistleblower Award from SEC

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Re: Nanex Gets $700k Whistleblower Award from SEC

#231

Post by consz »

nanexllc wrote: post #229
consz wrote: post #228

Earlier quoted context omitted.

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.

Internalizers use both. The give retail the slower price, and buy and sell on their own account at the faster price. Nanex has uncovered a document from the NYSE stating that this is the case.

Let me be more clear -- if internalizers are regulated to use anything, why aren't they regulated to use the direct feeds specifically? If the regulation specifically allows them to use the SIP, that seems to be a failure of the regulation itself.

Re: Nanex Gets $700k Whistleblower Award from SEC

#232

Post by kasey_junk »

nanexllc wrote: post #224
kasey_junk wrote: post #189

Earlier quoted context omitted.

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).

Actually, I was asking how you would design an ideal SIP. I have no opinions on the current law, but find the technical challenges of the SIP terribly interesting.

I'd still love to hear you discuss it...

Re: Nanex Gets $700k Whistleblower Award from SEC

#233

Post by kasey_junk »

nanexllc wrote: post #220
kasey_junk wrote: post #216

Earlier quoted context omitted.

The SIP isn't currently required to be consistent in the CAP sense of "consistent", but that is something people complain about. I think rightly, they point that the audit/compliance components of RegNMS are very troubling in the face of N inconsistent SIPs. Similarly, people complain about the SIP feeds being latent and I'm sure it would be a very real problem if any single exchange being unavailable made the entire…

Please point to the exact paragraph in Reg NMS that backs up your story. To those reading, don't waste your time awaiting an answer because there is no such paragraph in Reg NMS. The Regulations (Reg NMS) are very clear about this. That's why I was awarded $750K from the government after all.

I'm not sure what story you want me to back up is? If you are claiming that the current law requires the SIP to be consistent in the CAP sense, I'll defer to you and ask that you point out why you think so?

If you are asking about evidence that some people have claimed that the SIP being non-consistent is a problem for audit and regulatory compliance, is that not what you yourself are arguing in this post? http://www.nanex.net/Research/IsNBBOIgnored.html

I think maybe you are reading into my comment something that isn't there?

Re: Nanex Gets $700k Whistleblower Award from SEC

#234

Post by Spooky23 »

CyberDildonics wrote: post #34
tptacek wrote: post #15

Earlier quoted context omitted.

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…

> what NYSE was doing probably didn't impact you at all. Then where does all the money HFT firms make come from?

The people making money on the HFT stuff are the exchanges. The HFT people are making realtively easy money, but require vast bulk to do so.

Re: Nanex Gets $700k Whistleblower Award from SEC

#235

Post by EdHominem »

ethbro wrote: post #218
EdHominem wrote: post #155

Earlier quoted context omitted.

Imagine that they're providing free firewood to the public - what obligates them to provide the pickup trucks?

The law, in the same way we regulate many markets that can only efficiently support fewer participants than would be required for a fully competive marketplace. Usually due to capex: energy infrastructure, network effect: financial, or limited availability of resources: wireless spectrum. If it's in the public interest to have trucks and no firewood seller would otherwise provide them. That's absolutely something gov…

Well I demand that my free server have 128GB of ram, and holograms. Fucking fatcats.

Re: Nanex Gets $700k Whistleblower Award from SEC

#237

Post by michaelwsherman »

TheNanex wrote: post #48

Yikes. Lots of misinformation here. First of all, this has nothing to do with High-Frequency Trading. It's about the NYSE not delivering a product (SIP real-time data) while collecting $100M a year for that service. This was happening for at least 3 years. I am a champion of free markets. The term "High-Frequency Trading critic" is a label others use when they either can't understand and/or refute solid evidence. I'm…

Hey, a bit late to the game here, but I just want to say I'm a huge fan of your work.

At my last job I worked on one of the Reg CAT bids, and I spent a lot of time looking at Nanex Research--totally mind blowing. The markets would be a better place if the regulators were doing Nanex-style analysis. Keep up the good work!

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