HFT - If You Commit The Following Your Company Is Finished

Discussion in 'Wall St. News' started by THE-BEAKER, Jun 19, 2012.

  1. roll on july.

    soon this will be effective when they vote next month and the blatant cheating highlighted below will make the markets a fairer place to trade:

    The European Securities and Markets Authority guidelines on ‘Systems and controls in an automated trading environment for trading platforms, investment firms and competent authorities' came into effect on 1 May 2012 and identified several practices that have been associated with HFT as constituting market abuse under the EC's Market Abuse Directive:

    ■Ping orders, entering small orders in order to ascertain the level of hidden orders and particularly used to assess what is resting on a dark platform

    ■Quote stuffing, entering large numbers of orders and/or cancellations/updates to orders so as to create uncertainty for other participants, slowing down their process and to camouflage their own strategy

    ■Momentum ignition, entry of orders or a series of orders intended to start or exacerbate a trend, and to encourage other participants to accelerate or extend the trend in order to create an opportunity to unwind/open a position at a favourable price

    ■Layering and spoofing, submitting multiple orders often away from the touch on one side of the order book with the intention of executing a trade on the other side of the order book, with the manipulative orders removed once the trade has taken place.

  2. points 2/4 locals did that all day on the floor?
  3. sorry points 1/3 upticking downticking fast markets
  4. a few locals capitalised at 1/2 million quid is not the same as this - you cant make the comparison

  5. This is stupid; let me clarify why:

    Pt 1. says I can't enter lots of small orders

    Pt 3. says I can't enter large orders

    Pt 2. says I can't adjust my passive orders, (in volatile markets, pricing models adjust frequently)

    Pt 4. says I can't make a market, what if I have orders on both sides, one cancels the other.

    So in conclusion: It's 'illegal' to trade big, it's 'illegal' to trade small. It's illegal to change your mind about the order your working.

    So the goal is to get people not to trade??

    When they pass this, and the markets go to shit, it won't be long until they start paying HFT's to come back.
  6. euclid


    So it is only legal to enter a small number of large orders provided you intend to unwind at an unfavourable price?
  7. People don't trade anymore! It's just ECN rebate and predatory algo's.

    My old firm had close to 1000 traders (retail and prop) in 2006-2007 (pre HFT takeover). Today the firm is no longer in existence, and I would say 90% of those traders are no longer in the business or haven't made any real money in years.

    That's 900 people out of work, plus the programmers, compliance staff, back office staff, secretaries, etc, etc. Also, that's hundreds of charting service accounts and news service accounts gone. How many people were laid off at those businesses due to less revenue?

    And that was just one "prop" firm.

    Point being, HFT is blatant stealing by a few firms who can pay millions to co-locate and have faster computers. Nothing more. It has caused a huge ripple effect on the entire financial industry.

    If they pass this, it will be the best thing they ever did to this bullshit sham of a market.
  8. Bob111


    not in US. WS own this f** place
  9. That's because your firm couldn't adapt. Don't blame HFT because you/your prev firm/ your prev colleuges don't know how to trade.

    How about trying to LEARN? Or is the learning curve too steep?

    Kinda reminds of scientists who down talk new methodologies, because it would completely negate everything they learned and worked for their entire lives.

    Shit happens.
  10. You are such a fool.

    1000 traders and nobody "adapted". LOL. I bet you started trading in the last five years, correct?

    After 15+ years, I've adapted to everything, but this is just plain stealing. When you enter a position and it IMMEDIATELY flashes 10, 15, 25, 50 cents against your position on no volume, something clearly is wrong with the system.

    I'm still making money, but instead of low 7 figure years, it's mid six figure years...but taking much larger risk.

    So stop with the "adapt, learn, blah, blah" nonsense. When 98% of guys who made a ton of money for well over a decade just stop earning, obviously the game isn't on a level playing field.
    #10     Jun 20, 2012