I´ll, do not worry about that . But the fact is there. And I´m not making of myself any kind of megapro. It´s just common sense. And please, keep your personal offenses for yourself, hate when idiots start using demagogy to make their position more valid. Anyway, HFT* must go. (*By HFT I´m refering to the "bad" types of HFT (flippers, etc), not the arbitrageurs, scalpers, and rebate traders. It´s quite interesting how the opponents of HFT attack one type of trading, while the defending side defend the other one (or use only the "good" ones as their argument) ) P.S. Dumb algo traders that lose while being in the other categories also lose, they just lose
Fair enough.....if anyone is really that pissed about bad lot sizes in small stocks, why not just move to options or futures? Surely you can find something that performs very similar.....
I think that´s the main problem, people are doing that. "Real" volume is running away from some instruments by little, and they will end up without a market in some years. And that will be bad for the top players, I believe that´s the only reason why they started to get "worried" about the issue.
" "bad" types of HFT (flippers, etc)," could someone describe what is meant by flippers in this situation also what other kind of bad HFTers are there?
February 28, 2012 11:14 am D Börse to charge for âstupid algosâ By Jeremy Grant in London Deutsche Börse is to issue punitive charges to traders if they send too many orders into the exchange that do not result in deals being done in a bid to clamp down on what it calls âstupid algosâ. Like other exchanges, the German operator has seen a surge in the number of orders streaming into its trading system amid the spread of high-frequency trading. More On this story Italy to limit high-frequency orders Sweden finds HFT effects âlimitedâ HFT Speed will not always bring a bonanza Asia not the HFT haven people think HFT traders braced for tough curbs in Europe IN FT Trading Room G20 reforms the timetable for Europe Job Moves who is hiring and where Quick View London hit by Lehman ruling HKEx investment plans may hit margins Such trading uses computer algorithms, or âalgosâ, to generate buy or sell orders in reaction to market data and economic statistics, in pursuit of a pre-determined trading strategy or as part of market-making activities. However, exchanges are worried about the growing proportion of such orders that do not result in a deal being done, and are often cancelled or revised at the last minute as market sentiment changes. Regulators have highlighted the practice of âquote stuffingâ, involving entering large numbers of orders and/or cancellations to orders to create uncertainty for other traders, or to camouflage their own strategies. Such orders use up the capacity of an exchangeâs trading system, slowing down trading speeds for high-frequency and other types of ultra-fast traders trying to get deals done as fast as possible. There are fears that such âstupid algosâ are operated by traders with less robust systems than larger, more established HFT firms. The established players in the market include Getco and Citadel of the US, and Optiver of the Netherlands. Andreas Heuer, head of the business and market analysis team at the bourseâs Xetra equities market, said the exchange wanted to discourage âcapacity abuseâ by certain unnamed traders. âThe intent is predominantly to secure the integrity of our system. We want to disincentivise our trading members from using stupid algos which result in only a small number of trades but a high number of order transactions,â he told the Financial Times. âThey [such traders] do not contribute value, they are simply using system capacity.â He added: âWe want to save this [system] capacity for having the highest speed possible for these guys who really contribute to market quality. We want to have a balanced situation and not have the bad guys harm the good guys.â A new tariff will be introduced that penalises traders who exceed a certain order-to-trade ratio. An order-to-trade ratio is the ratio of orders sent into an exchange compared with the number of trades that actually get done as a result. Mary Schapiro, chair of the US Securities and Exchange Commission, said last week that her agency was still considering asking exchanges to adopt a rule that would impose a surcharge on traders who generate high levels of message traffic, because of the costs it imposes on other traders who must receive such data. The FT last week reported that Borsa Italiana planned to introduce a similar system to discourage traders from sending too many orders into its system. The London Stock Exchange has operated a similar tariff, which it calls an âorder management surchargeâ since 2005 and revised it in 2010. Euronext, which comprises the Paris, Amsterdam, Brussels and Lisbon markets, has operated one since 2007. Additional reporting by Telis Demos in New York
and walla...http://www.reuters.com/article/2012/03/06/us-stanford-jury-idUSTRE82516X20120306 ..now they are free to stick their head in the sand for another two years..similar here in chicago where the majority of parking tickets are written n the 1st ten days of the month,quota filled,back to the 7/11
Well, at least you can use this "activity cycles" to calculate when to try some schemes or gray trading strategies
A Former SEC Enforcer On Slowing Down HFT After years of trading near the speed of light can regulators realistically place a speed limit on high frequency trading? Mark Fickes, a former attorney for the SEC enforcement division and currently with BraunHegey & Borden of San Francisco, weighs in. http://www.advancedtrading.com/algorithms/232602392 Well, looks like some big fish has been hurt enough to start moving the water around
"Nasdaqâs measures will penalise traders that send over 1m messages per day â which will include quotes, cancellations and replacements â but generate fewer than 1 trade per 100 messages. The penalties will initially range from 0.01 cents to 1 cent per trade, with higher charges for messages further from the market price. This is called the weighted order-to-trade ratio. The charges could change, however, if they prove not be effective at curbing messaging." "Direct Edgeâs message efficiency incentive programme will target any customers whose trade-to-message ratio is less than 1-to-100. Those who exceed the ratio will receive lower rebates to place quotes in the market, down from 0.34 cents to 0.33 cents per share." http://www.ft.com/cms/s/0/8d3aead4-689b-11e1-b803-00144feabdc0.html#ixzz1oyTzaN8S