Re:U.S. stock markets are rigged, says author Michael Lewis
by jellicle on Monday March 31, 2014 @08:41AM
(#7501012)
Just because the exploit is illegal in one circumstance and not in another doesn't mean it's not an exploit.
When the exchanges are complicit in the deal - being paid for sending information early to particular parties - it's pretty easy to argue there is a conspiracy to defraud the general public, and so regulators have regularly argued:
http://www.gotgoldreport.com/2014/03/why-new-york-ag-wants-c...
I assume that when these practices are finally banned you will change your tune, right?
Re:U.S. stock markets are rigged, says author Michael Lewis
by yummyfajitas on Monday March 31, 2014 @09:35AM
(#7501322)
I don't understand. Using the multicast quote stream (which costs a few thousand/month) is an "exploit"? Or are traders somehow obligated to ignore the actions of other traders? Perhaps anyone using a computer is obligated to act as an agent for people without a computer, rather than a competitor?
I truly don't understand what you are arguing. Could you please explain the mechanics of what you believe should be illegal?
Re:U.S. stock markets are rigged, says author Michael Lewis
by mmaldacker on Monday March 31, 2014 @09:47AM
(#7501389)
The article you linked calls it insider trading and not front running. In addition, the issue discussed in the article is about making company information public earlier to a select group of people (which is insider trading). However, most HFT (particularly market makers) do no care about this and rely only market data provided directly from the exchanges. This data is provided fairly to everyone.
Re:U.S. stock markets are rigged, says author Michael Lewis
by crdoconnor on Monday March 31, 2014 @12:20PM
(#7502371)
>Please explain the mechanics of this.
You say that a lot.
I already explained the exact mechanics in this comment: https://news.ycombinator.com/item?id=7500223
...which you did not respond to.
Re:U.S. stock markets are rigged, says author Michael Lewis
by yummyfajitas on Monday March 31, 2014 @11:07PM
(#7505931)
I previously ignored your comment because in the context of the conversation, it was completely irrelevant. In the comment you replied to, I was asking how one can "cut in front of you". Your comment was just about rapidly trading and rapidly waving one's hands in order to somehow do something evil.
"Use pattern recognition software to outcompete other traders" is not a trading mechanic.
Please explain the mechanics of this.
...a trader being forced to pay higher prices for his buy orders due to HFTs front-running...
Clearly you didn't understand the article, which was about predatory trading increasing market efficiency. It was not about front running, which is when your broker trades in front of you in violation of his fiduciary duty to act in your best interest. (Note that your competitors do NOT have the duty to act in your best interest.)