UK trader arrested for May 2010 U.S. Stock market flash crash

Discussion in 'Wall St. News' started by just21, Apr 21, 2015.

  1. Pekelo

    Pekelo

    No and personally I don't care because it doesn't effect me. But there is no good reason flashing prices that one doesn't intend to keep, so end of discussion.
     
    #721     Jan 31, 2018
  2. sprstpd

    sprstpd

    Since it doesn't effect you, then maybe you don't know how effective spoofing can be against the bots. It is an equalizer for human discretionary traders (if it were legal).
     
    #722     Jan 31, 2018
    Macca1 likes this.
  3. bone

    bone

    Algorithmic trading strategies generally speaking are entering orders meant to be filled. The fact that you are too slow manually to compete with those orders is beside the point from a regulatory standpoint.

    Spoofers are entering orders meant to subvert the integrity of the market and are in direct violation of long established exchange rules and regulatory laws. Specifically, the SEC expressly forbids "rigging quotes, prices or trades to create a false or deceptive picture of the demand for a security."
     
    #723     Jan 31, 2018
    Overnight likes this.
  4. You think all filled orders by those algos are legit? Some are just creating order flow to m!nipulate. Not only that, but what service does front-running provide?
     
    #724     Jan 31, 2018
    Macca1 likes this.
  5. bone

    bone

    1. Yes, if an algo is not crossing orders, quote stuffing or spoofing then the fills are completely legit, and 2. Newsflash - it’s been an ECN speed game for going on two decades now. You’re not going to beat them with a mouse and X-Trader.
     
    #725     Jan 31, 2018
  6. sprstpd

    sprstpd

    Every order placed in the market has a chance of being filled, even if the originator does not want it filled. That is the problem with your and the SEC's argument/law.
     
    #726     Feb 1, 2018
    athlonmank8 likes this.
  7. bone

    bone

    Don't shit on me - I am simply explaining current reality as it exists at this very moment in time right or wrong, good or bad.

    If you read the criminal complaint clearly, and you know something about how regulated electronic trading exchanges process ECN messages and orders - it's quite obvious to me at least that the complaint almost certainly IMO originated from the Chicago Mercantile Exchange and their legal department referred it directly to the appropriate regulators.

    Crazy, wild, huge volume spoofing on the world's largest stock index futures product during prime trading hours is certainly twisting the dragon's tail. And the complainant in this case certainly in the end agreed to a consent decree, disgorged large sums of money, and ratted out everyone he utilized to undertake his enterprise.
     
    #727     Feb 1, 2018
    propwarrior likes this.
  8. bone

    bone

    As a public service announcement - are you sick and tired of the algos and the spoofing and the gamesmanship ? Look at lengthening your trade holding time frame. Problem solved. The bots mean nothing to a swing trader - even a daily swing trader. It might even make you a better trader and improve your position management skills. Just a thought, my 2 cents and YMMV.
     
    #728     Feb 1, 2018
    Overnight and tomorton like this.
  9. d08

    d08

    As long as the orders aren't phantom HFT orders, I'm okay with it. So if they get hit they will suffer as they should. Not flash some orders and pull them before any could execute.
     
    #729     Feb 1, 2018
    athlonmank8 and bone like this.
  10. sprstpd

    sprstpd

    All your posts seem to be advocating that spoofing is bad when in fact it is just another tool. An especially useful tool against algo-bots. If you want me to get vulgar, I can.
     
    #730     Feb 2, 2018
    athlonmank8 likes this.