http://www.bloomberg.com/news/2010-10-18/nyse-euronext-cancels-trades-of-s-p-500-etf-at-9-6-below-opening-price.html
I'm sure Homeland Security's new cyber security will fix that problem toot sweet.
I bet you can "Bank" on it
Regulators can add a faulty software update at NYSE Euronext’s electronic Arca stock market to the list of mishaps that have weighed on investor confidence.
“Something went wrong. The question is why,” said James Angel, a finance professor at Georgetown University in Washington. “For them to cancel the trades is probably causing heartburn in back offices across the country.”
The glitch in the fund with a market value of more than $80 billion comes as federal regulators are trying to prove U.S. exchanges still work after the May 6 crash that erased $862 billion of share value in 20 minutes
Yesterday’s mispricing “indicates a breakdown in market mechanisms,” Georgetown’s Angel said. “I hope the regulators are looking at it.”
Showing posts with label HFT. Show all posts
Showing posts with label HFT. Show all posts
Wednesday, October 20, 2010
Monday, October 11, 2010
60 Minutes Brings HFT To The Mainstream, As CFTC Refutes HFT Liquidity-Provisioning Argument
http://www.zerohedge.com/article/60-minutes-brings-hft-mainstream-cftc-refutes-hft-liquidity-provisioning-argument
If America saw this piece last night on 60 Minutes the FED doesn't have a shot in hell of drawing the average American back into the market.
This is just one more ploy of the rigged financial system.
It's all tied together.
Last night on 60 Minutes, Steve Kroft, finally brought mainstream America's attention to the topic that has been the primary scourge of efficient markets over the past 5 years: High Frequency Trading (not to be confused with Signing, aka RoboSigning). In Wall Street: The Speed Traders, Kroft spoke to such advocates of a robot parasite-free as Themis Trading's Joe Saluzzi and (now ex) Senator Ted Kaufman, as well as some other individuals who stand to benefit by computerized feedback loops making a mockery of price discovery, and which have now caused something like ten mini flash crashes in as many days, not counting the Flash Crash itself. Of course, the only defense the HFT lobby continues to use is that it provides liquidity
If America saw this piece last night on 60 Minutes the FED doesn't have a shot in hell of drawing the average American back into the market.
This is just one more ploy of the rigged financial system.
It's all tied together.
Last night on 60 Minutes, Steve Kroft, finally brought mainstream America's attention to the topic that has been the primary scourge of efficient markets over the past 5 years: High Frequency Trading (not to be confused with Signing, aka RoboSigning). In Wall Street: The Speed Traders, Kroft spoke to such advocates of a robot parasite-free as Themis Trading's Joe Saluzzi and (now ex) Senator Ted Kaufman, as well as some other individuals who stand to benefit by computerized feedback loops making a mockery of price discovery, and which have now caused something like ten mini flash crashes in as many days, not counting the Flash Crash itself. Of course, the only defense the HFT lobby continues to use is that it provides liquidity
Sunday, October 3, 2010
On Tomorrow's Secret Meeting To Plot The End Of High Frequency Trading
http://www.zerohedge.com/article/tomorrows-secret-meeting-eliminate-high-frequency-trading
What Tyler failed to mention is those math geeks are hired by corporate companies like Goldman and friends.
Once again caught reaping the riches of the wronged.
The SEC's "definitive"(ly worthless) report on what happened on May 6th was a dud, and was nothing more than a distraction-based smear campaign against Waddell and Reed (an experiment in which we can only hope W&R participated involuntarily): a firm which did something that was completely in its right to do. But is this unexpected? After all had the SEC confirmed that it is indeed HFT who is responsible for a broken market structure, it would have effectively destroyed itself: if and when the SEC does indeed confirm that the entire market topology over the past 5 years has been hijacked by young and pustular math Ph.D.'s with fast computers, the implications to fair markets would be orders of magnitude worse than the fallout associated with the Madoff scandal, and could serve as grounds for the unwind of the SEC itself, which would have to explain why it has been avoiding calls against HFT impropriety for years. So in a sense Mary Schapiro's conclusion is nothing less than a lass desperate act of self preservation. Which however means nothing in the grand scheme of things. Tomorrow, as the WSJ reported a week ago, the Investment Company Institute, better known to Zero Hedge readers as the guys who track the now permanent weekly outflows from capital markets, is holding a secret meeting in which some of the participants "are determined to push for a plan to restrict high-frequency trading" (furthermore, the ICI was rather pissed about this particular leak, implying that things are really serious). While the SEC may have declared a market structure truce, and is peddling its usual worthless solution of circuit breakers (more on this below), actual market participants have had enough of seeing their profits plunge and HFTs extracting more capital out of the market than the much maligned ten years ago market makers and specialists ever did.
More from the WSJ on the dilemma facing
What Tyler failed to mention is those math geeks are hired by corporate companies like Goldman and friends.
Once again caught reaping the riches of the wronged.
The SEC's "definitive"(ly worthless) report on what happened on May 6th was a dud, and was nothing more than a distraction-based smear campaign against Waddell and Reed (an experiment in which we can only hope W&R participated involuntarily): a firm which did something that was completely in its right to do. But is this unexpected? After all had the SEC confirmed that it is indeed HFT who is responsible for a broken market structure, it would have effectively destroyed itself: if and when the SEC does indeed confirm that the entire market topology over the past 5 years has been hijacked by young and pustular math Ph.D.'s with fast computers, the implications to fair markets would be orders of magnitude worse than the fallout associated with the Madoff scandal, and could serve as grounds for the unwind of the SEC itself, which would have to explain why it has been avoiding calls against HFT impropriety for years. So in a sense Mary Schapiro's conclusion is nothing less than a lass desperate act of self preservation. Which however means nothing in the grand scheme of things. Tomorrow, as the WSJ reported a week ago, the Investment Company Institute, better known to Zero Hedge readers as the guys who track the now permanent weekly outflows from capital markets, is holding a secret meeting in which some of the participants "are determined to push for a plan to restrict high-frequency trading" (furthermore, the ICI was rather pissed about this particular leak, implying that things are really serious). While the SEC may have declared a market structure truce, and is peddling its usual worthless solution of circuit breakers (more on this below), actual market participants have had enough of seeing their profits plunge and HFTs extracting more capital out of the market than the much maligned ten years ago market makers and specialists ever did.
More from the WSJ on the dilemma facing
Thursday, September 30, 2010
This Has To Be A Joke: SEC About To Blame Entire Flash Crash On Waddell And Reed's E-Mini Trades
http://www.zerohedge.com/article/has-be-joke-sec-about-blame-entire-flash-crash-waddell-and-reeds-e-mini-trades
The competency of the SEC is astounding and never ceases to amaze me.
They obviously don't give a damn if "The People" know that their bought off, and they're going to milk that cow as long as they can.
Bloomberg has just released something which if true, will wipe out every last ounce of credibility left in the market. As readers will recall, the initial scapegoat that CNBC and everyone else, who has no clue what really happens in the market decided to pin the flash crash on, was small Kansas-based trading firm Waddell & Reed, which traded a few extra contracts of E-Mini futures in the hours preceding the flash crash. Well, ladies and gentlemen, if this advance glance into what the SEC is about to disclose in its flash crash report is indeed valid, then the entire flash crash is about to be blamed on Waddell and Reed once again, with no mention of High Frequency Trading, or any of the other real culprits for the drop which wiped out $1 trillion in market cap, and the furthermore the report will have no policy recommendations.
The competency of the SEC is astounding and never ceases to amaze me.
They obviously don't give a damn if "The People" know that their bought off, and they're going to milk that cow as long as they can.
Bloomberg has just released something which if true, will wipe out every last ounce of credibility left in the market. As readers will recall, the initial scapegoat that CNBC and everyone else, who has no clue what really happens in the market decided to pin the flash crash on, was small Kansas-based trading firm Waddell & Reed, which traded a few extra contracts of E-Mini futures in the hours preceding the flash crash. Well, ladies and gentlemen, if this advance glance into what the SEC is about to disclose in its flash crash report is indeed valid, then the entire flash crash is about to be blamed on Waddell and Reed once again, with no mention of High Frequency Trading, or any of the other real culprits for the drop which wiped out $1 trillion in market cap, and the furthermore the report will have no policy recommendations.
Why Be A Market Maker When You Can Just Be A HFT Scalper?
http://www.zerohedge.com/article/why-be-market-maker-when-you-can-just-be-hft-scalper
The average American needs to be fully aware of just how rigged the Wall Street range is.
My advice keep your money in your pocket and don't even go there, you have better odds of winning in Vegas.
The cannibalization of profits courtesy of HFT means very soon everyone will be an HFT! And when that happens, virtually everyone will be on the same side of the trade, until there is a regime change and everyone rushes to the other side, which according to many is precisely what happened on May 6, when the market went bidless. So yes, this is exactly what will happen once again, as more and more of Wall Street realizes that this last loophole to eeking out a few extra pennies per trade is the only place to be. What happens next is anyone's guess, although as the following guest post from Wall St. Cheat Sheet explains, it won't be pretty.
The average American needs to be fully aware of just how rigged the Wall Street range is.
My advice keep your money in your pocket and don't even go there, you have better odds of winning in Vegas.
The cannibalization of profits courtesy of HFT means very soon everyone will be an HFT! And when that happens, virtually everyone will be on the same side of the trade, until there is a regime change and everyone rushes to the other side, which according to many is precisely what happened on May 6, when the market went bidless. So yes, this is exactly what will happen once again, as more and more of Wall Street realizes that this last loophole to eeking out a few extra pennies per trade is the only place to be. What happens next is anyone's guess, although as the following guest post from Wall St. Cheat Sheet explains, it won't be pretty.
Wednesday, September 29, 2010
Investors, Regulators Laid Path to 'Flash Crash'
http://online.wsj.com/article/SB1000...LEFTTopStories
Has anyone who makes or breaks set in place regulations ever thought about the future consequences of what they're doing? Because it doesn't seem to me as if the thought has ever entered their mind.
As the Securities and Exchange Commission finalizes its report on the May 6 "flash crash," it is being forced to confront the fallout of its own decisions—which Wall Street sought and cheered—that ushered in an era of fast trading dispersed across dozens of venues.
But the flash crash, he says, shows there have been "huge, unintended consequences."
Has anyone who makes or breaks set in place regulations ever thought about the future consequences of what they're doing? Because it doesn't seem to me as if the thought has ever entered their mind.
As the Securities and Exchange Commission finalizes its report on the May 6 "flash crash," it is being forced to confront the fallout of its own decisions—which Wall Street sought and cheered—that ushered in an era of fast trading dispersed across dozens of venues.
But the flash crash, he says, shows there have been "huge, unintended consequences."
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