Registered: Jun 2006
07-10-12 10:38 PM
Agree with sprstpd on the general principle ... but I might add:
As most readers here probably know, the time-honored (and until recently very profitable, at least for me) business of being a non-pro retail liquidity provider is being rapidly crushed to death by the HFTs employing (1) a scorched-earth, on-steroids version of traditional order internalization and (2) latency arbitrage (i.e., legal front-running) using colocated direct exchange feeds versus the slower and less information-rich consolidated tape which all the little people have to use. Probably most of you read last week's news on the new NYSE RLP program and recognized this as another major nail in the coffin...
I've had a good run as a liquidity provider and won't be completely sorry to give it up in favor of one or more new lines in the trading business, but it's worth a try (or two, or three), and it's worth keeping a finger in the pie over the next few years, to see if the exchanges are now, or will ever, make available to retail traders any new order types that might be effective weapons in the battle against the HFTs. Do I believe it will happen, or is happening? No, but as just said I'm willing to invest some time, now and in the future, making sure I definitely can't do anything about getting screwed by the new order.
Anyway, that's my interest in the subject matter at hand: Check out any new order types and confirm or deny the hypothesis that they are not going to help me.