Earlier quoted context omitted.
The large investment banks actually have a code they can append to their orders so they can jump to the top of the order cue. That is the definition of "front running". I'd like to see a 1 cent tax per share per transaction. That'd dramatically limit HFT.
Why would a tax limit HFT and not just push spreads apart by the amount of the tax?
For the Love of Money
281–290 of 291 posts
Re: For the Love of Money
#282Earlier quoted context omitted.
The large investment banks actually have a code they can append to their orders so they can jump to the top of the order cue. That is the definition of "front running". I'd like to see a 1 cent tax per share per transaction. That'd dramatically limit HFT.
Anyone connected to Direct Edge can send an order flagged as HideNotSlide. Everyone is playing on an even field with respect to that order type. HideNotSlide does not cause an order to "jump to the top of the order cue[sic]." It preserves your order entry time at a price that is contra the NBBO if there is not an order at Direct Edge at the NBBO (if there is an order at Direct Edge at the NBBO the incoming HideNotSli…
http://www.directedge.com/Portals/0/04Support/Membership/EDG...
Re: For the Love of Money
#283Earlier quoted context omitted.
Because if Jack does't want to build the bridge and he holds enough of the company then he gets to say "stop building the bridge."
Is there evidence that's actually what's happening? I hear a lot of complaints on the internet about a quarterly results focus, but I've never heard of shareholders actually telling a company to change tack.
Re: For the Love of Money
#284Earlier quoted context omitted.
Bummer. I suppose what I should really be asking, though, is this: do programmers on Wall Street make enough to live comfortably in the city while still hitting normal savings goals, like retirement? For Manhattan, I'm thinking this would be a total comp. of $200k or above.
One can live comfortably in the city on ~ 95K. Perhaps one would have to make $200K on Wall Street, if only because turnover tends to be high.
It's a good way to save for other life aims, for sure.
Re: For the Love of Money
#285Earlier quoted context omitted.
This is a perfect example of the cynic snarkiness for the sake of snarkiness that plagues Hacker News; the guy of the article only has written one article besides this one[0] and that's it. He doesn't even have a profile pic or a clickable profile as most journalist in the NYT have. And he seems to spend his time as the director of something called groceryships not creating support groups for money addicts or selling…
"Cynical: believing that people are motivated by self-interest." Call it a plague if you like, but I'm OK with it. And I wasn't being sharply critical (snarky) for the sake of being sharply critical. Honest. He's pretty actively promoting himself, his story, and his business (which is what it is) online, and he just successfully SEO-bombed his way to the top of the charts. You may think it's out of an abundance of go…
http://www.google.com/trends/explore#q=%20SAM%20POLK
So it's impact augmented by a factor of 20; if he was searched 10 times per month before it means now he is being searched 200. So not that much but even if it were your point still doesn't make sense to me because what difference would there be with anyone writing anything? I guess that your point is not that everyone should write anonymously right? So, what is it?
Re: For the Love of Money
#286Earlier quoted context omitted.
Because if Jack does't want to build the bridge and he holds enough of the company then he gets to say "stop building the bridge."
Is there evidence that's actually what's happening? I hear a lot of complaints on the internet about a quarterly results focus, but I've never heard of shareholders actually telling a company to change tack.
After all, the investor needs to understand the business strategy, the operating conditions, and the particular risks and opportunities available to that business. The company and (particularly) it's management have an interest in increasing demand for the stock, so they normally oblige.
The conversation is not one-way. Stock options mean that the personal financial interests of the senior leadership team are normally well-aligned with that of the investors, so all the parties to these discussions have a mutual interest in the performance of the stock.
Investors have a mandate to maximise return and minimise risk. They have a limited ability to predict the future; an ability which drops precipitously the longer into the future they look. Investing client funds based on unreliable long-term predictions would be an irresponsible dereliction of duty on the part of the fund manager. In addition, measuring the performance of fund managers is also notoriously difficult, so there is a very human need to get as much feedback on performance as possible as quickly as possible. All of these factors combine to exert incredible pressure on the institutional investor to focus on gains in price over shorter time-spans (months rather than years).
This interest and short-term focus will naturally come across in discussions between the investor (=owner) and the senior management in the company. It takes an unusually self-aware, self-confident and self-assured management team to recognize (let alone resist) this inexorable pressure.
Re: For the Love of Money
#287Earlier quoted context omitted.
Actually, it seems that it is in fact possible for HFTs to jump the queue: http://online.wsj.com/news/articles/SB1000087239639044398920... Relevant quote: "He became convinced exchanges were providing such an edge after he says he was offered one himself when he ran a high-speed trading firm—a way to place orders that can be filled ahead of others placed earlier. The key: a kind of order called "Hide Not Slide." Whet…
Bodek is a failed trader, and one who apparently can't read exchange API manuals (here's BATS explaining it for him: https://www.batstrading.com/resources/features/bats_exchange... ). Now he's trying to make money from sensationalism and poorly written books. That aside, Hide not Slide orders are an interesting case. They exist only in US equity markets, and they're a great study in unintended consequences. US equiti…
Re: For the Love of Money
#288Earlier quoted context omitted.
Anyone connected to Direct Edge can send an order flagged as HideNotSlide. Everyone is playing on an even field with respect to that order type. HideNotSlide does not cause an order to "jump to the top of the order cue[sic]." It preserves your order entry time at a price that is contra the NBBO if there is not an order at Direct Edge at the NBBO (if there is an order at Direct Edge at the NBBO the incoming HideNotSli…
I visited DirectEdge.com I doesn't appear that the average investor is allowed to join. http://www.directedge.com/Portals/0/04Support/Membership/EDG...
The point is that no special license or membership is required, although you may have to do some work to implement this type of order.
Re: For the Love of Money
#289Earlier quoted context omitted.
Bummer. I suppose what I should really be asking, though, is this: do programmers on Wall Street make enough to live comfortably in the city while still hitting normal savings goals, like retirement? For Manhattan, I'm thinking this would be a total comp. of $200k or above.
One can live comfortably in the city on ~ 95K. Perhaps one would have to make $200K on Wall Street, if only because turnover tends to be high.
Re: For the Love of Money
#290Earlier quoted context omitted.
Thanks Patrick! >>You can use software development to achieve very quantifiable results for companies. Can you direct me to books / resources to understand more in depth what you are talking about here. I have read what you are saying many times but never quite get it. I am struggling to understand why would someone want to pay me % of their profit when they can hire some programmer for $50/hour. Is it about how you…
Like Napoleon mentions in a sibling comment, you're typically not asking for a percent of profit directly, but rather for a weekly rate which is at a substantial premium to $50 an hour. (I've billed at $30k for a week before and pitched successfully at $50k.) A $60k engagement for my typical client wouldn't represent 1% of their profits -- many of them spend more on sandwiches in any given year. (If lunch as a perk c…