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To: HerbVic who wrote (121349)	10/31/2011 9:24:01 AM
From: Keith Feral	Read Replies (2) \| Respond to of 213182

Europe is trying to pass this type of legislation, without any restrictions on bank trading like the Volcker rule in the US. If Europe wanted to control HF trading, the first thing they need to do is prevent the banks from trading derivatives. The second thing they need to do is increase margin requirements for all derivatives. Too many rogue traders losing capital for the European banks.

To: HerbVic who wrote (121349)	10/31/2011 12:22:15 PM
From: Win-Lose-Draw	Read Replies (1) \| Respond to of 213182

That's not what happens. When things get goofy out there, the bots dont start an oscillation dance with each other, they go to sleep. Literally. There are control panels with big red buttons on them that disconnect the machines from the data feeds. And they don't get turned back on until things calm down. The fundamental problem here is that we're trying to make markets "safe" for retail, when retail should not have more than lunch money exposure to what is a fundamentally dangerous market. The idea that market action is supposed to be differentiable is one of the most dangerous myths out there. It's not - normal price action is discontinuous in its natural state.