http://www.telegraph.co.uk/finance/...s-calls-for-inquiry-on-black-box-trading.html Looks like the right people are taking an interest in the cheating/manipulation that has ruined this business for the last 7-8 years.
<B>HFT is Killing the EMini</B> http://www.nanex.net/Research/EMini2/EMini2.html Interesting read, I'm sure is same for bund
It's the same for all eurex bonds,liffe stirs,cme interest rate complex. When sensible,rational people in positions of authority take an interest the game will be at an end for those who can only trade in a way where crazy unfair advantages bring results. Stacking the order book in cme/liffe stirs with 000's of lots has been absurd from the beginning.Why not charge them 10c per lot cancelled after a threshold of 10 times their average executed volume,then we'll see if entering a quick 5000 lot pays dividends. As for liquidity providers,imo when the market volatility picks up they run away which is bizarre as surely that's when their needed the most! Instead they trade the minimum required to keep the mm status, wait until it cools down they proceed with the 2000 up crap that stops real traders from making a good living playing by the rules. Remember the 2-3 really busy days a month they switch off,the other 17-18 they are in all day posting/cancelling millions of lots to gain an unfair advantage. I'm going to email the guy from article i posted telling him where to look at the futures algos,if anyone else wants to then go ahead,the more that do the better it will be for us.
LME already have an HFT charge in place if you quote some absurd ratio to executed trades, it kicks in at over 250,000 quotes a day relative to what you've executed I think, saw the contract from an HFT guy looking to get into it sent by his bank but can't find it on quick google search. best I could dig up was " ⢠Charges may be imposed on a member if the trade to quote ratio exceeds the limit" from a TT LME pdf
Is that messages or actual lots entered into the market? liffe and eurex use the loophole of "messages" over volume. To stop the behaviour it has to be a volume related threshold before fines kick in.
http://www.marketwatch.com/story/nyse-euronext-shares-drop-on-eurozone-tax-comments-2011-08-16 I'll gladly pay a bit more,with a massive smile on my face for A) Get a decent market back where people,oh I don't know,actually want to do a decent % of orders entered B) Get rid of the back riding filth that has been HFT/Algo trading Great news!
i wouldnt get too excited yet. this idea has been floating around for 2 years. now if they were talking about a cancelled order tax, i might start frothing a little bit.
A cancelled order tax - what a brilliant idea! I know this idea has been floated unsuccessfully before but I think this time the powers that be have had enough and will act,a tax of this nature will kill the profits that these swindlers need to keep their business model going. http://www.marketwatch.com/story/ic...ftse-100-lower-2011-08-17?link=MW_latest_news The exchanges are taking a hit today,I read here before that the main counterparty on liffe is a giant HFT/Algo. Bad luck liffe,looks like you've backed the wrong horse.
Interesting Article here http://www.reuters.com/article/2011/09/01/us-financial-regulation-algos-idUSTRE7806J420110901 Also from reuters today,looks as if the EU commission are looking to "crack down on HFT" Maybe the email I sent a few weeks back had something to do with it. "Adapt or die" springs to mind
I think it's a horrible idea if this were a tax; that is, if such fees were collected by/for the government rather than used to offset other trading costs (i.e. paid back directly to the exchanges). If set by the government for revenue-generating purposes, it will undoubtedly be set too high for efficient liquidity provision and kill the market, sending it offshore. On the other hand, some (small) charge per order might be a good idea, but only if it's not a tax and only if all market participants are treaded equally (i.e., no exemptions for big customers/banks/mm's).