Order Stuffed to Oblivion

Discussion in 'Trading' started by Joovenile Jatt, Sep 20, 2010.

  1. Another day of what looks likely to be record low volume as all NORMAL traders stay away from what is sure to be another day of order stuffed manipulation by the HFT freaks. In the time it takes you to punch your desk, the HFT nerd has already put 20,000 orders all over the bid and pulled it, slowing down your system till up pay up and up to purchase your contracts.

    Never has there been such poor latency at prop firms around the country, yet only now are people waking up to the fact that this is ARTIFICAL LATENCY created by the slowing down of systems due to order stuffing. The HFT nerds will always go back to their location argument, which is fine. If I'm thousand of miles away the CME servers than a HFT nerd then yes i will accept i will be slower than him.


    Still we have not got a reasonable explanation as to why the bids are constantly order stuff. One HFT nerd claimed it was simply a chance for HFT's to position themselves at the front of the queue.

    Well quite clearly if you want to do that, you leave your orders there after you place them, as if you pull them you have lost your place in the queue and go right to the back of the order book.

    Another HFT nerd claimed that order stuffing is merely HFT reacting and trading to a faster market. So how then, do you explain thousands or orders being placed and pulled within milliseconds 10 PRICES AWAY FROM MARKET?!?!?!? Those orders have zero chance of ever being filled. The ones closer to market I can understand, but 7, 8, 9 10 prices away from market?? Give me a break.

    The question here remains. Where is the legitimate answer to why the bid side order book is order stuffed. Even more worryingly, where are the CME rules on trade/reject ratios. How can someone place and pull 20,000 bid orders every second and every possible come close to fulfilling any respectable level of filled trades to cancellations??? His ratio of traded contracts to cancellations must be 0.00000001%. How can they get away with that if the exchange have rules in place to fine this???

    Truly bizarre
  2. TraDaToR


    I don't see any explanation for this on the ES. The only participants that are exempt from messaging policy are Lead Market Makers and there are none on the ES. IMO this particular bot won't last long .CME will tell them to stop...
  3. I was seeing a bid flasher a while back, but whats this about 20k orders?

    If its not on ZH it must be a lie.