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Technology Stocks : The *NEW* Frank Coluccio Technology Forum -- Ignore unavailable to you. Want to Upgrade?

To: axial who wrote (36491)	11/1/2010 2:39:41 PM
From: Frank A. Coluccio	Read Replies (4) \| Respond to of 46821

Exchanges Balk at Forcing Market Maker Obligations Onto HFTs Traders Magazine Online News, October 29, 2010 Should high-frequency traders be required to assume market maker obligations? In the wake of the "flash crash," and charges of desertion by liquidity providers, the Securities and Exchange Commission is mulling the imposition of affirmative and negative market maker obligations on HFTs. The regulator is concerned that the group, which provides between 40 percent and 50 percent of all liquidity in the market, shirked its duties to support stock prices during the May 6 downdraft, and should be asked to do more. That could mean forcing HFTs--essentially proprietary traders without customers--to register as market makers with the exchanges where they hold membership. A handful already do, but most don’t. For their part, the exchanges are largely ambivalent. They recognize the benefits to their markets, but are hesitant to speak out in favor of a draft. The New York Stock Exchange, operated by NYSE Euronext, is the exchange most committed to market maker support, as seen by its designated market maker and supplemental liquidity provider programs. Still, NYSE Euronext is opposed to forcing HFTs to assume the obligations of market makers. “If someone is just a very large part of the market or doing a lot of trading, but is not necessarily getting any of the benefits of a market maker, then they should not be required to register as a market maker,” said Joe Mecane, executive vice president and chief administrative officer for U.S. markets at NYSE Euronext. Cont.: bit.ly ------

To: axial who wrote (36491)	11/5/2010 4:13:57 PM
From: Maurice Winn	2 Recommendations Read Replies (1) \| Respond to of 46821

As usual, the regulators make things worse. Chilton wants accountability. Just stand back and watch: <Chilton said in prepared remarks for an energy conference in Las Vegas. "We should explore ways to hold those who set off runaway robotic trades accountable," he said. At least one algorithm is know to have disrupted the oil markets this year. Infinium Capital Management said in August it was the company at the center of a six-month probe by CME Group Inc into why a new trading program malfunctioned, racking up a million-dollar loss in about a second on February 3." > So, when Infinium Capital says "Oh woe is us, our million mile a second computers made silly trades at the bottom of the flash crash and we are short of a few $$billion", don't bail them out by canceling their trades. If people want to buy and sell, let them put their orders in. If they do dumb trades, then that's their problem. That's what makes a market. There is no magical "right" level or correct speed of people realizing a market is miss-priced. Flash crashes are fun and just million mile a minute computers playing games with each other - playing "chicken". The flash crash tests liquidity and brings extra liquidity into the market [me for example] to profit from flash crashes. Now though, it's too dangerous to leave trades and liquidity lying around in the market waiting for a price to arrive, because the regulators will steal your money and give it to their supersonic million mile a minute computer friends who whine that they need their trades cancelled ["Just the losing ones thanks"]. Chilton is obviously clueless about markets, liquidity, supersonic million mile a minute computers, algorithms, mathematics and monetary motivation. Bart Chilton probably has got some talents but they were not disclosed. Mqurice