News for hackers. Stuff that matters.

A comment on U.S. stock markets are rigged, says author Michael Lewis. Parent comment

Re:U.S. stock markets are rigged, says author Michael Lewis by smoorman1024 on Monday March 31, 2014 @09:30AM (#7501292)
The most obvious and simplest thing wrong with open outcry and human market makers is the number of specialists that it takes to handle a full universe of stocks. A small electronic trading team can provide/take liquidity in 8000 stocks or greater. If you need specialists you are going to have to provide a living salary for every single specialist who will only be able to handle 20 stocks at most. The cost of trading for the end consumer is higher.
[ Parent | on HN ]
Re:U.S. stock markets are rigged, says author Michael Lewis by madaxe_again on Monday March 31, 2014 @09:42AM (#7501351)
> The cost of trading for the end consumer is higher.

What about when you factor in the artificially elevated buys and artificially depressed sells as a result of HFT?

[ Parent | on HN ]
Re:U.S. stock markets are rigged, says author Michael Lewis by smoorman1024 on Monday March 31, 2014 @09:56AM (#7501448)
What specifically are you referring to?
[ Parent | on HN ]
Re:U.S. stock markets are rigged, says author Michael Lewis by madaxe_again on Monday March 31, 2014 @11:06AM (#7501890)
Did you read the article? :) Pre-emptive buys driving up the price across exchanges.
[ Parent | on HN ]
Re:U.S. stock markets are rigged, says author Michael Lewis by aet on Monday March 31, 2014 @05:23PM (#7504282)
The cost of trading is still drastically lower now than it was with open outcry. There were a number of federal indictments related to NYSE specialists blatently ripping off retail customers.

http://www.nytimes.com/2005/04/13/business/13nyse.html

[ Parent | on HN ]