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clearinghouse
Registered: Aug 2010
Posts: 572 |
10-02-12 09:55 PM
Quote from Clubber Lang:
Why do you think HFT is finally starting to become a hot topic in the mainstream media? Flash crash? Nope. KCG debacle? Guess again.
Banks are getting smoked by HFT powerhouses like Getco and Hudson River trading.
Everything was fine as long as the banks were printing money. Canabilization has left only the best (or in this case, the fastest) firms still making money.
Look for HFT rule changes to come from the bank owned SEC in the near future.
Equity HFT powerhouses are mostly hurting too. I'd have bought your argument in 2008, maybe, although the anti-HFT propaganda campaign seemingly started after 2008.
Also, while I do think the fastest firms are still making money, I don't think the margins are there. They're going to have guys with shitty bonuses, more layoffs, and hesitation in terms of buying more technology.
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Bob111
Registered: May 2002
Posts: 6420 |
10-02-12 09:56 PM
aren't all of them reported record profits from trading without any single losing day? BAC,GS,MS and so on. too lazy to search for that article,but it's should be some where on ET
well..anyway..this is what you get sooner or later,when you squeeze every retail trader\investor from stock market..now it's dog eat dog..sorry..bot eat bot..
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clearinghouse
Registered: Aug 2010
Posts: 572 |
10-02-12 10:01 PM
Quote from Bob111:
aren't all of them reported record profits from trading without any single losing day? BAC,GS,MS and so on. too lazy to search for that article,but it's should be some where on ET
It's not that difficult to have strategies that don't have losing days with a few core, key trades and decent infrastructure. That still doesn't mean there's enough money in the winning days to make it worth it.
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Bison42
Registered: May 2012
Posts: 86 |
10-03-12 09:11 PM
Clubber Lang is right on the money. Trouble is the SEC doesnt have a clue to fix this problem.
They'd be smart to start charging crazy fees and actually enforce BBBO, but they don't have the chops.
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DeeDeeTwo
Registered: Dec 2007
Posts: 623 |
10-07-12 03:39 AM
Quote from clearinghouse:
It's not that difficult to have strategies that don't have losing days with a few core, key trades and decent infrastructure. That still doesn't mean there's enough money in the winning days to make it worth it.
Exactly.
The costs of Algo trading are so high...
That these profits you read about are sheer myth.
It's just another Zero Sum Game...
With 2% winners and 98% losers.
The big winners have always been infrastructure vendors.
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dealmaker
Registered: Dec 2006
Posts: 607 |
10-07-12 04:36 AM
Quote from DeeDeeTwo:
Exactly.
The costs of Algo trading are so high...
That these profits you read about are sheer myth.
It's just another Zero Sum Game...
With 2% winners and 98% losers.
The big winners have always been infrastructure vendors.
HFT isn't going anywhere, they will be more regulated and they may lose their sub penny advantage but they will be around; we might as well get used to it...
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