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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: ggersh who wrote (265590)8/1/2010 6:24:38 PM
From: Giordano BrunoRead Replies (2) of 306849
 
HFT's are doing their part to help that old nut realize his dream.

Competition between HFT systems today has reached the point where microseconds matter. Any edge one has to process information faster than a competitor makes all the difference in this game. If you could generate a large number of quotes that your competitors have to process, but you can ignore since you generated them, you gain valuable processing time. This is an extremely disturbing development, because as more HFT systems start doing this, it is only a matter of time before quote-stuffing shuts down the entire market from congestion. We think it played an active role in the final drop on 5/6/2010, and urge everyone involved to take a look at what is going on.

nanex.net

nanex.net

"Ask Mountain" Over 56,000 quotes in 10 seconds
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