You know a lot about bond market (thanks for sharing) so maybe you could find the connection for us between Fed and markets using your expertise.
Like I said before, there's no significant direct impact between Fed action and HFT in equity. You guys are the ones keep arguing the Fed has something to do with this. And in this thread, you are the one who wrote "Reason being that market capitalization is in trillions and most of it is sucked by bond market." I can't argue your point for you - I disagree with your point.
All those are decentralized market places (tradeweb is the request for quote electronic system I was talking about). 90% of volume in bond trades goes through voice, which aren't represented by that list. In any case, my point is that bond trading is fragmented; Doesn't your little screenshot show that I'm right?
whatever..if you thnk that there is no bots on corp.bonds and everyone have to call to make a trade on markets\exchanges-you wrong.
You are basing your view on your imagination. I'm basing on my view that I've traded corporate bonds and treasury bonds in real life (*). (*) just to be sure, I clearly didn't say ALL trades are done in voice. In fact, I pointed out that there are such things as electronic venues - except that that (1) they aren't that popular and (2) they aren't all limit book types. (**) there are some attempts to do HFT-esque stuff with super liquid treasury otr, but not for corp bonds.
My latest post was about HFT providing virtual or simulated liquidity when there is no real buy/sell interest. It is part of MM activity or people trying to simulate MM or exploit this. People who trade should get basic concepts of what is going on and stop thinking like WalMart shopper that after you buy there is returns counter. In fact HFT tries to make the same impression that there is somebody to take your wares back so people keep coming back to buy crap. Equity markets like bond market is also fragmented because no central market place would be able to absorb the paper that is floating around. Just try to understand Knight problem - in half an hour NYSE existence has been threatened and it is on life support now. As to the bods and HFT: the guys, the phones, the markets you refer to is smoke and mirrors. Now few details. Government bond is tier 1 capital, Fed takes it as collateral, others take it as collateral, can be swapped, derived, packaged and repackaged. It is the liquidity that fuels all the markets and oscillates to the rhythm of bond auctions and GAAP for earnings and stress tests: Liabilities become assets, markets fluctuate and HFT flourish.
do you have brother or maybe dissociative identity disorder? cause i already had enough of this bonds trading conversations http://www.elitetrader.com/vb/showt...245266&perpage=6&highlight=bonds&pagenumber=7
Wow! Look at that - two guys with fixed income experience telling you the same thing, and you are still "right"? Okay okay, I'll stop - I get the feeling what you want to hear isn't reality.