Stopped reading right after this nonsense- "Profits from high-speed trading in American stocks are on track to be, at most, $1.25 billion this year, down 35 percent from last year and 74 percent lower than the peak of about $4.9 billion in 2009, according to estimates from the brokerage firm Rosenblatt Securities. By comparison, Wells Fargo and JPMorgan Chase each earned more in the last quarter than the high-speed trading industry will earn this year." Those numbers aren't even in the ballpark. Only 1.25 billion profit. LMAO.
Because my old firm cleared for an HFT firm and they averaged 1-3 million profit PER DAY (and not a single down day-- ZERO). I acknowledge that HFT profits are down from their peak (because they've put so many people, firms, and smaller HFT shops out of business already), but the numbers in the article are a pittance compared to what the real profits are and were.
They hide the real profits for fear of getting shut down and raising public scrutiny, ire ? Therefore they are tax cheats and financial rogues, is that what you are saying? surf
hard to pay attention to numbers such as in this article, if a HFT firm makes 100 mm in gross trading profits in a given year, but spends 75 mm on technology during the same year, what's the number you would use to show their profitability? how would the author know how much HFT firms used on their HFT related expenses? from the little that I know HFT is not as profitable as it used to be, the edge from new R&D is lower and comes at higher cost, volatility is down too
When did I say that? If you could read, the article states- "according to estimates from the brokerage firm Rosenblatt Securities" When did ESTIMATES from Rosenblatt securites become auditted numbers from the IRS? I'm saying that if one HFT shop that I know was making 300-400 million, there's no way the entire industry was only doing what the article states
The HFT is a crooked game. Avoiding fees, manipulating markets, gaming stocks, etc. These HFT's have screwed up the markets so badly that noone knows whether to sneeze or scratch thier ass. Get rid of em all.
You understand the issue with capacity constraints, right? I like how you manage to extrapolate an observation on a single firm to the whole sector. You work for a clearing firm - you don't say.