Structural problems in stock market

Discussion in 'Trading' started by Lights, Oct 27, 2010.

  1. Would be solved if the regulators passed rule to enforce minimum 1 second time period that a quote to buy/sell stock would remain valid. Cancels permitted after 1 second.

    Investor confidence would soar.
  2. Confidence is already soaring. US is back. Likely to be, in comparison to other markets, one of the best performing stocks market. Things seem to have changed.
  3. They will need broad public participation to continue the trend.

    Also, scientists proved that it takes 50ms to identify a man's sexual orientation. This amount of time of honoring quotes will improve trading.

  4. Money coming from abroad? If market rises, greed brings back a broad participation.

    Check nasdaq-100. It does not budge even when dollar is up, and market is red.
  5. Untrue. Markets are way off 09 lows and public participation is at historic lows. Trading is also at historic lows. Volumes are dropping fast. 95% of daily volume is run by harold & kumar.

  6. Why is dollar up, bonds selling off, and tech up? does it not say that appetite for risk is back and that money is heading to US assets?
  7. I'm not here to discuss your macro positions, talking about HFT reg.

  8. They have probably already done simulations to figure out over the long haul how to screw the public through HFT.

    Joe Saluzzi is always insightful but he has admitted lately, that he doesn't know what the solution to flawed Market microstructure we have today.

    What there is now is a collection of symptoms. And for the most part, the doctors.. i.e the HFTers... have more money in keeping the patients sick then healthy. Think how many risk management systems are getting screwed into putting on losing positions to offset risks that are manufactured, or on the other hand, inherent risks in the Markets are painstakingly hidden by HFT so that the institutional trader gets faded every which way - on his entry, his exit, his position, and his ability to hold on during episodes of volatility. You definitely have to know how to trade extremely well to survive running money given how much tougher Markets are these days. But the funny thing is, only a few people from institutions actually care. It's sad really, its like they don't care if they lose money. I guess thats what 3% management fees do to you.
  9. mickmak


    A one sec time enforcement solves nothing.

    I would enter a fat order at the market then lift that order off the market to a price that no one can hit/lift. Essentially doing the same shiz.

    So instead of a single FIX msg, I use two. But I sure can have them stacked back to back. :)
  10. Put all the transaction debate to the side.

    Here is the underlying problem:

    Banks are permitted to trade their client deposits leveraged up to 30x1.
    These deposits are insured by FDIC and the banks themselves are insured by the full faith and force of the US treasury.

    They can not lose... They never face or fear a margin call and they can hold positions open essentially interest free until a handsome profit is made.

    The market is rigged and manipulated by our Treasury, our regulators for the benefit of our banks under the facade of Wall Street bail outs.

    There are still opportunities to profit trading but not at the level of our deep pocket banks with their govt covers. These banks pitched perfect games every single day of the first quarter... Impossible in a true free market.
    #10     Oct 27, 2010