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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Maurice Winn who wrote (105476)	4/8/2014 9:29:03 AM
From: teevee	2 Recommendations Recommended By axial Hawkmoon Read Replies (1) \| Respond to of 217620

You are dead wrong on this. Most HFT are not market makers in that they actually accept risk. Then the buy side weakens, they stand aside. The purported enhanced liquidity is a canard for high speed, high volume front running.

To: Maurice Winn who wrote (105476)	4/8/2014 10:21:34 AM
From: carranza2	Read Replies (1) \| Respond to of 217620

Whatever, Mq. The problems are three: Flash crashes (a phenomenon we've already seen), front running and insider trading. The latter two are legal issues. The flash boys are IMO trading illegally. They are trading on material information which is not publicly available. And they are also front running. Otherwise, why do you think the flashers are buying order flow? It must be nice to front run on insider info. Absolutely no risk of loss, which of course explains why some houses have had few or no losing days in months. Explains why banks are so incredibly profitable. That and QE. The flashers are building systemic complexity into the markets. I don't think that's a very good idea. You may call it great fun when a real market crash ensues when the risks HFT creates materialize but I doubt that the public will agree with you. I also hope you are as quick as the flashers because you will suffer too if you're not.