this sounds like something from elementary school where the Teacher had to go over many examples of past lessons so the students could recall what they had forgotten over the summer!1 Who would want to use something where they have no idea of what they are doing? Why not just use the regular way of entering orders and leave all the so- called dark pool stuff to the market makers. You can't blame everyone for not getting your orders executed or making a profit. Develop a trading system so that you can make money when the securities go up or down and then you won't have these minute problems with order execution and small thoughts!!
wow, who would have ever thought that in order to replace and retire all those NYSE Specialists, that modeling and replicating in automation, their collective job process and value-add would be so hard. this was one of the most concise definitions yet of dark pools and the pre-arranged relationship to participate or not with them, all in search of the ever elusive "edge" there are no more edges, just dull blades, and shavings of steel left on the proverbial floor, where there used to be sharp sabers... no wonder the equity trading business has been commoditized... one of the most offensive things I've seen recently in a trip to Wall Street were all the foreigners and foreign born workers and techies and back office workers, where there used to be dedicated jobs solely for Americans from all over NY & NJ, not anymore. don't be surprised if the efforts to tax Wall Street (collectively through transaction costs, etc.) succeeds.
My broker says......Top Of The Book Rule means that: If you place an order to sell 100 shares of company x at market price and the top two orders to buy for company x at the NYSE:: (1)- buy 60 shares at 20$ (2)- buy 40 shares at 18$ while top of the book orders to buy at NASDAQ: (1)- buy 40 share at 10$ You will be filled 60 at 20 and 40 at 10$ Is this true?!
I just flipped thru the entire thread. As many of you know, I run a HFT trading operation. I will make no specific arguments for or against HFT, am not here to win any intellectual argument, justify my systems' existence, or argue some morality point. Do I support some financial reform? Absolutely, but I have a biased standpoint, just as everybody else. The point I think is very simple. Very very few ppl on this forum (and in general public, it seems) actually knows what it is that HFT firm does, and how it extracts profits. It is eeriely similar to a NYSE Specialist, trying to explain to ppl who have never set foot on an exchange trading pit, what is it they do, and what functions they provide (and as we see on May 6th, the "old scummy" specialists do serve some purpose). The "charges" are exactly the same. You have a portion of traders (both retail and professional), get so angry about the NYSE Specialist system, that they believe all Specialists are thieves and robbers, and should be burned figuratively and literally. You do have the few market participants who did game the system, and the cadre of Specialists is an "old boy's circle" that protects their own interests, bsolutely. Fact is, vote with your Trades. It really is as simple as that. It is like sitting down on a poker table, if you don't like the game, leave. Eurex suffered almost 60% decline in bund/bobl activity, after they introduced the 1/2 tick size that no one liked, they got the hint, and reversed their decision. Vote with your economic activities and heft. Meanwhile, we can all have half dozen shots, and argue about the rigged markets supported by Comrade Obama (or Commandant Bush, which ever conspiracy theory you prefer) until we are blue in the face, but come 9:30 tomorrow, the market will open again. What purpose would that serve?
These are the very things I was arguing for. forget the specifics and develop a plan of trading that will get you in aND OUT WITH A PROFIT OR A VERY SMALL LOSS AND ALL THIS TECHNICAL STUFF WILL TAKE CARE OF IT'S SELF!
who do you think? and why do you think sales of KY Jelly have been so strong. blame the limp wristed liberal of your choice.
Well, I think the latest unexplained market crash was caused by poor Indian software that had bugs. 10 terabytes of data and the SEC can't figure it out ? Ridiculous. The last IT contract I was bidding on was related to a horrible implementation written in India. I didn't get the gig (50 Americans were bidding on it !), but it was quite a "tell": low cost, but POOR, POOR quality.
The victims in pre-arranged trading are the market participants NOT INVOLVED in the pre-arranged trade. The willing participants are the ones breaking the law. IOI's are just pre-arranged trading by another name. It should not be allowed.