Gonz: The more I learn about automated trading, the more I support a $0.03 tax per transaction on the major financial markets.
Gaseous Anomaly: FTA: "The motive of the algorithm is still unclear."
Another Government Employee: Gaseous Anomaly: FTA: "The motive of the algorithm is still unclear."Maybe the worlds largest DDoS?Crash and burn, Baby!
pag1107: This is why the theory of the high holy market regulating itself fails, there's always going to be some asshat JOB CREATOR trying to game the system.
Balchinian: Long term, I think it would be the best thing for the country if the economy were to completely collapse. It'd be hell in the short term though. People would die. Still, I think it would be worth it./Hack on, dudes. Hack on.
vudukungfu: "I feel a tax on order-stuffing is what the markets need at this point," said David Greenberg of Greenberg Capital. "This will cut down on the number of erroneous bids and offers placed into the market at any given time and should help stabilize the trading environment."They should do that at the drive up windows in America. And you should have to stand on scales before ordering.I'm sorry, according to your BMI, you may have a salad, no dressing, and an ice water.
Crudbucket: Joke's on you, I ain't got any!
dj_spanmaster: Gonz: The more I learn about automated trading, the more I support a $0.03 tax per transaction on the major financial markets.But the complaint now will be that you'll not just destroy a few businesses but a whole industry. They already have a lot of money and will fight it, probably successfully.
ginandbacon: Well, that's not at all unsettling.
When the shiat goes down it's gonna be fun to watch. From my own selfish, non-stock owning, reasonably poor person, pass the popcorn PoV. Unrest and food riots notwithstanding.Surely it's gonna go down one day soon, with all this HFT carry-on?Not a fan of conspiracy theories, but the Securities and Exchange Commission's Fat Finger Crash findings reek of a hastily cobbled-together sham of an excuse.The Chicago Mutual Exchange called bullshiat on the "accidental $75 billion trade" excuse at one stage. Not sure what the current official positions is.
Futures and options markets are hedging and risk transfer markets. The report references a series of bona fide hedging transactions, totaling 75,000 contracts, entered into by an institutional asset manager to hedge a portion of the risk in its $75 billion investment portfolio in response to global economic events and the fundamentally deteriorating market conditions that day. The 75,000 contracts represented 1.3% of the total E-Mini S&P 500 volume of 5.7 million contracts on May 6 and less than 9% of the volume during the time period in which the orders were executed. The prevailing market sentiment was evident well before these orders were placed, and the orders, as well as the manner in which they were entered, were both legitimate and consistent with market practices. These hedging orders were entered in relatively small quantities and in a manner designed to dynamically adapt to market liquidity by participating in a target percentage of 9% of the volume executed in the market. As a result of the significant volumes traded in the market, the hedge was completed in approximately twenty minutes, with more than half of the participant's volume executed as the market rallied - not as the market declined. Additionally, the aggregate size of this participant's orders was not known to other market participants. Additionally, the most precipitous period of market decline in the E-Mini S&P 500 futures on May 6 occurred during the 3½ minute period immediately preceding the market bottom that was established at 13:45:28. During that period, the participant hedging its portfolio represented less than 5% of the total volume of sales in the market.
dj_spanmaster: But the complaint now will be that you'll not just destroy a few businesses but a whole industry. They already have a lot of money and will fight it, probably successfully.
Big Ramifications: Not a fan of conspiracy theories, but the Securities and Exchange Commission's Fat Finger Crash findings reek of a hastily cobbled-together sham of an excuse.
Eatin' Queer Fetuses for Jesus: They don't require a login and password to make these sorts of trades?
Quoting dj_spanmaster's link:
By some estimates, 90 percent of quotes on the major exchanges are canceled before execution. Many of them were never meant to be executed; they are there to test the market, to confuse or subvert competing algorithms, or to slow trading in a stock by clogging the system-a practice known as quote stuffing. It may even be a different stock, but one whose trades are handled on the same server. On the Internet, this is called a denial-of-service attack, and it's a crime. Among quants, it's considered at most bad manners.
nmemkha: All orders should remain dark until executed.
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