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SEC approves Texas Stock Exchange, first new US integrated exchange in decades

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Re: SEC approves Texas Stock Exchange, first new US integrated exchange in decades

#461

Post by KPGv2 »

serf wrote: post #426
KPGv2 wrote: post #398

Earlier quoted context omitted.

One other aspect of HFT that is good for the general investor is that HFT injects liquidity, making it easier for a general investor to liquidate their position, which is a desirable thing for human traders. HFT does not magically make human investors engage in more or less speculative behavior. HFT is an easy thing to attack, but I've never encountered a lucid argument for why it's bad. "It's not fair that I'm not a…

the common argument against it is that it guarantees a technological arms race and by those conditions pushes the smaller groups out of the competition. it's unfair in the same vein that the rich are always offered better loan rates than the poor. Yeah, it's obvious why that would be, but it's not fair either. although imo pushing small-backer arbitrage out of the equation is a good thing.

> the common argument against it is that it guarantees a technological arms race and by those conditions pushes the smaller groups out of the competition.

But a cursory examination of history would reveal that the literal opposite has happened.

Re: SEC approves Texas Stock Exchange, first new US integrated exchange in decades

#463

Post by UltraSane »

resters wrote: post #454
CyberDildonics wrote: post #453

Earlier quoted context omitted.

Retail investors railing against HFTs are sort of like those San Francisco types who protest new development to the benefit of their landlords. It's nothing like that since there isn't a limited resource and everyone has access to the core purpose, which is to trade stocks. What I notice with these discussions is that no one can actually explain why a retail investor or anyone would want computers trading underneath…

Does one of the following traditions inform your view on this issue? a) https://www.sefaria.org/Bava_Batra.90b.1?lang=bi&with=Introd... b) https://sunnah.com/nasai/44

This comment makes no sense at all.

Re: SEC approves Texas Stock Exchange, first new US integrated exchange in decades

#464

Post by UltraSane »

resters wrote: post #452
jiggawatts wrote: post #437

Earlier quoted context omitted.

The boundary is "arbitrary", but clearly there has to be one, otherwise we're all nodding in agreement as trading speed heads inexorably towards Plank time units. We have some convenient "lines in the sand" that we can use as a guide: - To make trading fair globally, the round-trip time for light around the planet could be multiplied a couple of times. That's about a second. - The fastest possible time a human can pa…

Which tradition inspires your view... a) https://www.sefaria.org/Bava_Batra.90b.1?lang=bi&with=Introd... b) https://sunnah.com/nasai/44

You have posted this nonsensical comment 3 times.

Re: SEC approves Texas Stock Exchange, first new US integrated exchange in decades

#465

Post by UltraSane »

drob518 wrote: post #441
jiggawatts wrote: post #437

Earlier quoted context omitted.

The boundary is "arbitrary", but clearly there has to be one, otherwise we're all nodding in agreement as trading speed heads inexorably towards Plank time units. We have some convenient "lines in the sand" that we can use as a guide: - To make trading fair globally, the round-trip time for light around the planet could be multiplied a couple of times. That's about a second. - The fastest possible time a human can pa…

The only non-arbitrary boundary is the one set by physics. Everything else is arbitrary. There are ways to greatly reduce front-running of orders, but that actually is an orthogonal issue to HFT and microstructure level trading.

Limiting trading to human reaction times is much less arbitrary than what we are doing now.

Re: SEC approves Texas Stock Exchange, first new US integrated exchange in decades

#466

Post by UltraSane »

jpfromlondon wrote: post #434
UltraSane wrote: post #368

Earlier quoted context omitted.

No, it is proof that they are parasitically extracting money via non-productive strategies like latency arbitrage and order front-running.

Liquidity provision is valuable though, and it's not really parasitic to exploit inefficiencies, it's not even that profitable a strategy today.

It isn't nearly valuable enough to compensate for the wealth HFT extracts from the market.

Re: SEC approves Texas Stock Exchange, first new US integrated exchange in decades

#467

Post by CGMthrowaway »

tomrod wrote: post #347
CGMthrowaway wrote: post #240

Earlier quoted context omitted.

Probably talking about Starbase (elon musk).

Local state legislature has several car dealership owners that also started their own chartered towns. Wasn't thinking about starbase but that qualifies.

Did you have an example you wanted to share?

Re: SEC approves Texas Stock Exchange, first new US integrated exchange in decades

#468

Post by kbelder »

robocat wrote: post #130
SkipperCat wrote: post #13

The Miami stock exchange (MIAX) has their matching engines colocated in Equinix's NY4 data center in Secaucus NJ, much like many other exchanges. I would not be surprised if TXSE does the same. Many trading firms already have their trading engines in that data center and I would assume TXSE would want quick access to that order flow and this might be easier if they are in NY4. Of course, they may want to have their c…

> I would assume TXSE would want quick access to that order flow Perhaps Texas could use a different trading model that doesn't require ultra high speed trading. Matt Levine often mulls the idea of a system with a trading window that doesn't let the fastest connection to the order book win. Perhaps an order book that works at human speeds so humans can trade too (I can think of a few ways to do it - but would need mo…

I'm generally of the view that the more freedom in trading the better, but there is a concern on these ultra-high-speed trades that it ultimately prioritizes only certain blessed traders, those with expensive equipment, geographical proximity, and approved partnerships.

I've thought that one fairly neutral fix would be to add a random delay to the execution time of each trade. It could be very small... like between 0 to 1 seconds. Just enough to negate the 'all or nothing' prioritizing of a slightly faster connection.

Re: SEC approves Texas Stock Exchange, first new US integrated exchange in decades

#469

Post by Karrot_Kream »

UltraSane wrote: post #464
resters wrote: post #452

Earlier quoted context omitted.

Which tradition inspires your view... a) https://www.sefaria.org/Bava_Batra.90b.1?lang=bi&with=Introd... b) https://sunnah.com/nasai/44

You have posted this nonsensical comment 3 times.

And you keep incessantly posting about the moral evils of speculation which is only tangentially related to the Texas Stock Exchange. I guess morality policing makes your comments better?

Re: SEC approves Texas Stock Exchange, first new US integrated exchange in decades

#470

Post by Karrot_Kream »

Razengan wrote: post #422
KPGv2 wrote: post #403

Earlier quoted context omitted.

It's exhausting to see good reasons offered and then y'all proudly failing to understand those reasons. Like, there are literally multiple comments here explaining it.

If I have a condition that is resolved by standing upside down on my head, and I invent a 100 ways to balance my body on my head and explain the reasons for each of them, it doesn't mean that standing on my head is a good or sensible thing to do. And none of them address the core problem that is the condition that requires me to stand on my head. Look at why shares and the stock market were created in the place, and…

> If it takes you more than 2-3 sentences to explain something that's purely invented by humans it was probably silly to begin with.

Lol now apply this to medicine, surgery, physics, and computation next. You're using a "tree" to store data? Explain that in 2-3 sentences.

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