More proof, as if it was needed that the HFT game is a rigged game of three card monte played by bespectacled geeks and shoeless billionaires s that want to make trillions. http://www.zerohedge.com/sites/default/files/Themis weeden.pdf You need an IQ >=120 to understand this article, so most of you can ignore the link.
The HFT article you posted is by no means light reading, but is well worth it. Thanks a ton for linking that. I very much enjoyed it! HFT companies have become a powerful force in the business, making it very difficult to publicly speak out against the specific market structural issues that are harmful. The Themis team should be applauded.
They really need to stop labeling it the "HFT" problem and start calling it the "unfair equities market structure" problem or something like that. Speed has never been the problem.I have never heard any valid case against high speed trading on futures because exchange rules are almost perfectly fair and transparent. First in First out( or other clearly defined algo ), same access for everyone, if someone is faster than you then he merits to get the fill... The public is getting scared of the way the market are working today, see it like skynet getting autonomous and attributes it to "fast"trading whereas the problems are just some undue microstructure advantages that could be fixed ASAP.
It is?? Maybe the "trader" public. Everyone else is a little more concerned with such unimportant things ........ like a job. Meanwhile I read somewhere yesterday (don't recall the source) that a higher up type at the SEC went to work for a HFT recently and the commentary was don't believe the govmint will be doing anything substantial anytime soon about HFT.
I've said it a million times co location is a scam they need to create a system where quotes are DELAYED enough to everyone so that no one has a huge edge by sitting inside the matching engine. And bids/offers must stay for at least a certain time. Dont know what that is 1 second , .5 seconds, something so that the billion dollar funds dont have a huge edge.