The natives are restless and things are definitely not getting better on main street so what could be better than a New Jersey stock trader (Manoj Narang) agreeing to a high profile interview on 60 Minutes to rub it in.......hello transaction tax? Trader says he has never had a losing week using super computers to make thousands of stock trades in less than a second - "60 MINUTES" SUNDAY Steve Kroft Gets a Rare Look Inside the Secretive World of "High-Frequency Trading," a Controversial Method that the SEC is Scrutinizing New Jersey stock trader Manoj Narang says his firm has never had a losing week because his super computers are fast enough to capitalize on split-second opportunities in the market. Narang and other traders are using a legal but controversial technique called "high-frequency trading." It played a role in a 15-minute, 600-point market meltdown last spring now known as the "Mini Market Crash." Steve Kroft talks to Narang in a rare chance to see such a business up close. He also speaks to SEC Chair Mary Schapiro - who has high frequency trading in her regulatory sights - and others for a 60 MINUTES report to be broadcast Sunday, Oct. 10 (7:00-8:00PM, ET/PT) on the CBS Television Network. http://www.fundmymutualfund.com/2010/10/you-are-now-entering-parabolic-zone.html
Just wait in a few years when all these hft's are being questioned on Capitol hill. Imagine that, not one single losing week. Hmmmmm. That's why volumes on the exchanges have gone up over the last 5 years, more hft's are entering the market with their super fast risk free algorithim trading platforms. Volume on the exchanges is basically all of these hft's which make up 2/3 of the exchange volume. Don't believe the nonsense they scream about how they provide liquidity to the market place. Wallstreet is a fucking game at this point and the bots are running the entire show.
Yeah, they're providing liquidity... Lol! That statement is akin to the inv bankers saying, "these CDO's are going to be amazing for the markets as people make their house payments since real estate always goes up.":eek:
And yet Trans-Atlantic Cable Targets High-Frequency Traders All this investment for just an 8% improvement form 65ms to below 60ms.
How come you never hear anything about traders who blew up during the flash crash? It seems relevant to a discussion about successful / unsuccessful flash crashers (I mean HFTers) instead of paying homage to a guy with 10 million who somehow trades a large chunk of the SPY....
All and all, it was a pretty boring segment. There were several accusations without backup of fact. Sort of like this forum in some cases. Several suggestions that money and intelligence give some and advantage. There's a flash for you. Whether you believe in these things or not, it would have been more useful if any of the questions had probative value.
I saw the show last night. Can't remember much about it, which might mean a good thing. Most comments from '60 Minutes' viewers are astounding. http://www.cbsnews.com/8601-504803_...ogId=10391709&tag=socialBottom;commentWrapper http://www.cbsnews.com/stories/2010...75.shtml?tag=contentMain;cbsCarousel#comments
I CANNOT believe that the COO of the NYSE has not been fired yet!!!! Watch the CBS clip, and tell me who's side he's on. He literally encourages HFT's to put their servers IN THE NYSE (oh yes, they pay the NYSE big bucks to put their server there. Hmmm), so they can rape the markets all with the blessing of the NYSE who seems glad to have their $$$$ coming each month for the fee for keeping the HFT server there. Doesn't the Mafia behave this way? It's "all good" as long as we're getting paid... There is NO, ZERO value in having HFT's destroying the markets! They cannot prove that they provide liquidity, and the idiots like the COO of the NYSE and the regulators cannot figure out how these guys are creating phantom volume and stuffing quotes!!!! OMG!!!!!!!!!!!!:eek: At least the HFT guy interviewed came out said he's taking advantage of a situation. He said it's only about a 2-3 second opportunity that they take advantage of. They've never had a losing month. Hmmmmm... Never a losing month. Regulators and Bureaucrats, I lay the blame at your feet for this one! The HFT guys are probably looking at each other and saying, "I can't believe they've let us go on like this for this long! WOW!" Market Makers and Specialists who's markets dried up/went electronic are the one's with the axe to grind, and what many did was partner with computer guru programmer types to share what they know and put that in use with what the computer nerds know. Pretty simple concept. It's a concept that works, and these guys laugh out loud getting filthy rich as the regulators and bureaucrats scratch their heads...