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I love how even the founder of Nanex (Eric Hunsader) can't explain the difference between algorithmic trading and high frequency trading.
I really don't understand these guys (granted, I thought about all of 5 minutes). Why is a firm specializing in high frequency data and data delivery foaming at the mouth about HFT all the time?
This guy gets a boner dreaming about working for a regulator. Not that thereâs anything wrong with that
He seemed a little bit intimidated being interviewed live. Many do not understand the difference but he made it clear that he does not consider speed of trading as a major issue. He singled out 2 issues: existing regulations are being broken and not enforced (which one?) and that there are different classes of market players some with access to information and speed not available for others with exploitation of existing market microstructure (as it has always been). He also pointed out that ms market speed does not matter to retail investor but visible order book got thinner. So everything is sort of fine except one: Why it will be me who has nothing directly to do with HFT being potential subject to more regulation and possible taxation (FTT) or increased cost of trading?
Because this is a power grab by the traditional market making firms. HFT is bad. You should stop all of that and give the flow to us. And exempt us from the txn tax. Rent seeking regulatory capture.
This is a guy who sells a TAPE BASED system... That was designed > 10 years ago... And the word "tape" does not appear on his web site. Notwithstanding their Apologists... Nanex is all smoke and mirrors. They are such a tiny player... That he's more famous for releasing cool Algo Trading graphs... That "expose" industry standard algorithms to Zero Hedge morons... Then for his actual product that no one uses.
And annoyingly, it's that Nanex / Zero Hedge level of analysis that the media listens to. Blind leading the blind regulating the world. Think I read somewhere that the SEC has bought Nanex's product. Irony at its best.