The Epic American Credit and Bond Bubble Laboratory Message Board

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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: prometheus1976 who wrote (108255)	5/13/2010 11:50:57 AM
From: Ron Struthers	4 Recommendations Read Replies (2) of 110194

Good point about 'malfunction' yes the computer programs probably did what they were designed to do, just that their users probably did not want or expect that outcome. I think the bigger problem is the computer program trades are creating a false market. Recent research shows the computer trading, especially the flash and high frequency make up 73% and probably higher now of all the volume on US exchanges, but this 73% is represented by only 2% of the participants. So basically 2% of market participants are setting the tone and direction in the market. I do not like the smell of this. The flash trading is for sure front running in my books. Why should 2% of the participants get first crack at a trade? Just because they pay a fee? Why would they pay a fee? Because it is profitable to front run the market

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