this is the lobby group opposed to the new anti hft rules possibly coming in july funny how this group got together to oppose these rule changes. they all make money every day cheating. they must be shitting themselvs because if they had to trade the markets they could not make a bean The FIA EPTA membership currently includes: Allston Trading UK Limited Chopper Trading, LLC Citadel Securities Europe Ltd. DRW Investments (UK) Ltd Flow Traders B.V. Getco Europe Limited Hudson River Trading Europe Ltd IAT International Algorithmic Trading GmbH IMC Trading B.V. Jump Trading International Ltd Knight Capital Europe Limited Mako Group Optiver VOF Positive Equity Ltd. Quantlab Financial, LLC RGM Trading Europe Limited RSJ a.s. Spire Europe Limited Sun Trading International Limited Tibra Trading Europe Limited Virtu Financial LLC XR Trading LLC http://www.futuresindustry.org/epta/membership.asp
enlighten me please, how in the world do HFT traders cheat to make money? It's actually a serious question, i have no second thought about whether they should be allowed to trade or not. They should, as long as they follow the same rules as everyone else. And if they do follow the same rules, how exactly are they cheating?
HFT is being used to keep free market hostage to bureaucratic control. Most people do not understand the microstructure of the market and how the trading is being done. They confuse investing with trading and entitlement with risk. Free markets are under siege. If you look at the list you should realize that many of these guys are outsiders to the system. The more independent players you have the more difficult it is to manipulate the market. Instead of HFT we should talk transparency and free and equal access to markets for all participants.
"Cheat" is a strong word there. But Section 9(a)(2) of the 1934 Act does prohibit "raising or depressing the price of [a] security, for the purpose of inducing the purchase or sale of such security by others." It is arguable, for example, that the very frequent order cancellations and bid/offer size adjustments done by HFT firms that can lead to a stock price quickly changing a lot with few or no transactions taking place is a manipulative practice in violation of this rule. HFT algos designed to run traders' stops could also potentially be in violation.
read about quote stuffing for example.. http://www.reuters.com/article/2010/09/02/us-sec-trades-idUSTRE6812ZS20100902 that was 2010,but nothing was done since then..and never will be. specially on US stocks. perfect example, of how corrupt this whole system is. if SEC is 'for people' they could ban this subpenny shit overnight at ANY day. just one little step,that doesn't not require ANYTHING..they done NOTHING in those 2 years after this article
If someone floods exchanges with order quotes, they get fined. There are many articles about this. Other than this, what's the issue with hft? No arguments about fills, that can be done by any traders.
i have few-subpenny,displaying BS 'liquidity' and grabbing shares right before your order can reach the exchange,when you attempting to buy at ask. and off course you can forget about buying anything at bid and selling at ask,unless NBBO is stepping up on your ask,when you selling and opposite when you buying. other than that-it's all cool..fair and orderly market...