When there is aboslutely no liquidity , when it can randomly drop 1000 points on no volume? Solution. Slow down the market. 1 second to cancel all bids and offers. Eliminate subpennying all together, or make everyone be able to sub penny. elominate flash orders and ability of the select few to see order flow mili seconds before the majority. Uptick rule. When you trade, you must carry risk (which these superfast arbitrage algos do not). What risk they do not carry , all other investors not on same level do. They force investors into paying more for stock, not less, by forcing them into constant liquidity taking situations. They front run investors with subpenny ,flash orders, order flow. It might take some time to get the liquidity back into these markets, but they will slowly come. Markets will slowly recover from the nightmare it is living today. Big money will return , confident that 1000 point drops on no volume are a thing of the past. Its time to take back our markets.
Nofear, Send your concerns to the SEC, we need more voices. Our firm, Bright Trading is the only one voicing their opinions about these abuses. They are accepting comments about their roundtable discussion from Wednesday (in which some of these issues were raised). This is a perfect opportunity for traders to voice their concerns. http://www.sec.gov/cgi-bin/ruling-c...roundtable discussion and request for comment
So you are recommending more regulation, more rules to increase the "freeness" of a free market? It sounds like you are trying to change the rules to favor your own trading style. But if companies can game the system right now and beat you, what makes you think they won't be able to game the system with new rules and still beat you?
Whats wrong with a regulation that eliminates illegal activities? What these privilidged HFT's are doing is downright illegal. Solution would help all of retail traders, not just me and "my trading style". A free market is not one that consists of a useless(to the entire market system and liquidity) machine which has the ability to see your order flow and front run you. Nor is it one that allows the elite few access to sub penny darkpools. This doesnt sound free to me. It sounds like a scam. You either benefit from this scam (which is my guess) or you have little to no experience .
I don't even trade, let alone profit from subpennying. If it's illegal, why have there been no class action lawsuits yet? Don't tell me there's no lawyers that will pick it up because the HFT shops are too well connected. If it was infact illegal, it's got everything going for it as a case: a whole bunch of little guys being ripped off by big industry, a defendant with extremely deep pockets, an industry that is the current whipping boy for Congress, and a regulatory agency that is being accused of being asleep at the wheel during a crisis. You just don't get better than that unless we had nannycam video on youtube showing Tradebot employees bashing in the heads of kittens. I just don't think it's illegal. Fix your strategy and route around it. Not a big deal dude.
Are you bitchin & complainin because markets are plunging? That BP is getting bear raided? The markets deserve to plunge because our economic situation is in dire straits, our leadership is a bunch of fools, our TV sets have Marxist propaganda all over it, etc. Just short the markets; you'll make money and be happy.
An accurate description of the current financial landscape. No "green shoots", an administration with lockjaw and no good news to be found. Sounding like Carter and the 70's and perhaps worse.