Flash Crash report part 2
Another idea would see regulators adjust trading fees so
that firms providing liquidity get rebates to help stabilize
markets during stressful times.
They're desperately trying to make tings fair, but all they're doing is making things unfair, and they're making things much more risky. In effect, this is just another superfluous rigmarole that will have to be paid for by increased execution levies.
These types of adjustments could revamp the flow of tens of
trillions of dollars annually in the markets -- and could take
years of hearings and deliberation to settle.
This is the best that intellect and experience can concoct. Pretty pathetic, isn't it.
"Trading systems are complicated ecosystems,
An auction market is very simple, and it's no ecosystem. To be an ecosystem would require covert collusion.
and when you make what appear to be minor changes that can have big effects on the market -- the commissions will have to be very careful," said James Overdahl, a former chief economist for both regulators, and a vice-president at NERA Economic Consulting.
Then, Mr. Overdahl, you had better start boycotting or protesting the entire proceedings.
...the panel's report focused on structure and liquidity
issues, and did not blame high-frequency trading, said
Overdahl, who is also an advisor to the Futures Industry
Association's Principal Traders Group, which includes some of
the largest high-frequency traders in the market.
High frequency trading must be banned immediately. Since it won't be, shows that Shapiro is a hapless hack who hasn't got a clue. She's a little girl who is being manipulated and goes along with it for her career.
"I did not hear a lot of inflammatory discussion that you
heard immediately after the flash crash," he said.
That's because most don't believe it will recur, However, I believe it will recur at 10x the magnitude. Why shouldn't it? Nothing has changed. The breaker rules will help to exacerbate the situation because the market will LEAP beyond the 10% bound in one second. If they halt the exchanges, they won't be able to reopen for months. Otherwise, price would jump down the limit again on the next day's opening. I guess those geniuses think they'll be letting prices down easily this way. |
