I've done a fair amount of thinking about the long term effects of HFT's on the market microstructure. The HFT's reduce the margins to a point where most human traders cannot compete, for the very short term strategies like scalps and liquidity provision... the humans that stick around are mostly trading on longer time frames (may be a short as 5 minutes, but not many are still in the few seconds range) ... so when things go wrong and the HFT's pullback from their trading, there's no significant volume coming from humans to maintain sufficient liquidity... and you end up getting the flash crash and similar scenarios... This is only aggravated by regulators that heavily favor HFT... e.g. these algos post orders for < 1 second and cancel >90% of them, and regulators have no problem with this... if human traders post orders for < 1 minute and cancel > 50% of them, they may get in trouble...
Thanks...eusdaiki...Thank gawd this is a regulated market...uhhh err...oh wait...is it Forex under another name? ☺ ES
Blaming hft and algo shows gross ignorance and speculation. 1.) blaming hft is possible, but a stretch. You and I do not have the slightest idea if hft is the reason behind lighter volume. 2.) algos are not the problem - only hft on sub 5 to 20 second timeframes. Everything above is good game for humans Get your definitions right at laying enforce playing the bad judgement emotional blaming. It's the miilsecond trades in stocks (not most derivitaves) that's causing the (only) legitimate frustration with odd share lots. Unless you can tell me another bad side effect of the hft firms (this time with examples, not speculation or 'thinking time' hypo thesis) Cheers
There's plenty of examples... A good place to find a lot of research on the matter is nanex (focused on the US markets, but still good research) http://www.nanex.net/Research/EMini2/EMini2.html http://www.nanex.net/aqck/2805.HTML http://arxiv.org/abs/1202.1448
I think a better analogy is the picture the floor of an exchange, a true open outcry auction market. Then imagine one local who stood there flashing bids and offers only to cancel them immediately, all day long. How long do you this guy would last down on the floor before he was either fined or beaten to death? Somehow we can rationalize all types of bad behavior if the "machines" are doing it and we can't associate a name and a face to the actions. Eventually, it becomes accepted behavior and anybody who has a problem with it is called a loser or a schmuck.
Perhaps you need to look up the word "hilarious",if you really find it that funny then screw being around you for any length of time. You are a massive mug,pure and simple,you've made yourself look like a fool trying to abuse someone when you spoke with authority on a subject you know nothing about,that makes you very ignorant.I'll bet you do this a lot. Of course you can always pm me your name, work address and i'll gladly come and have a face to face with you,sort this out properly.I'm near Liverpool, St,so can be anyway in the city within 10 mins.
As I said, you didn't read the article. It was a proposal for a dark pool at Citi not on Eurex, if it were on Eurex it would still contribute to their volume figures. If you can prove otherwise then I will re-asses my position. Also check the original post, ....show me the abuse? you need to look in the mirror.
Thats the post I think was uncalled for and rude and maybe plain wrong. Speak to people on here the way you would in person in future and watch your cocky attitude considering you clearly don't have the balls to back anything up. Send me that pm whenever you want.
You have a curious benchmark for rude. You ever heard the expression about people in glass houses and not throwing stones? If you can provide evidence that dark pool trading has lead to a decline in eurex volumes then I will eat a bucket load of humble pie. I have no problem admitting I am wrong. Give me good a reason why you feel a face to face meeting would sort things out to your satisfaction then I will gladly oblige.
There's nothing I wouldn't say to anyones face that I wouldn't say here,you are obviously a coward who hides behind his pc. I don't need to give you a good reason for anything,you're a mug with no arsehole. Now send me the pm and we'll meet up,or go away like the wimp I suspect you are. I'n not responding to anymore of your shit posts trying to sidestep my request,It's obvious to any reader what you are.