Re:A High Frequency Trader's Apology, Pt 2
by yummyfajitas on Friday April 27, 2012 @03:05PM
(#3900607)
You're offering no evidence that it's harmless.
Neither you nor zerohedge has offered any evidence it has any effect at all, harmful or not.
Stuffing quotes causes the bid to oscillate between 10.00 and 10.01 rapidly for a fraction of a second. So what? If it scares you, wait 3 seconds for things to slow down and then place your order. Or if you want to be daring, place your sell order at $10.01 and hope you get filled at that price. Worst case you gasp don't get filled at $10.01 and have to change your order to $10.00 (omfg, no!!!).
Tell me why having to wait a tenth of a second before cancelling a quote is horrible.
Why do you believe I think this would be horrible?
I have no opinion on minimum quote durations - it would widen the spread somewhat (by raising the risk and therefore the costs of HFT), but I don't think it would matter very much.
To go back to my analogy, it would be like demanding that Amazon put marginally better air conditioning in their data centers. It would have a small effect on the evil hellish heat they create (don't you know that satan loves heat!), while possibly raising the price of goods they deliver by a tiny amount.
Neither you nor zerohedge has offered any evidence it has any effect at all, harmful or not.
Stuffing quotes causes the bid to oscillate between 10.00 and 10.01 rapidly for a fraction of a second. So what? If it scares you, wait 3 seconds for things to slow down and then place your order. Or if you want to be daring, place your sell order at $10.01 and hope you get filled at that price. Worst case you gasp don't get filled at $10.01 and have to change your order to $10.00 (omfg, no!!!).
Tell me why having to wait a tenth of a second before cancelling a quote is horrible.
Why do you believe I think this would be horrible?
I have no opinion on minimum quote durations - it would widen the spread somewhat (by raising the risk and therefore the costs of HFT), but I don't think it would matter very much.
To go back to my analogy, it would be like demanding that Amazon put marginally better air conditioning in their data centers. It would have a small effect on the evil hellish heat they create (don't you know that satan loves heat!), while possibly raising the price of goods they deliver by a tiny amount.