A veteran programmer explains how the stock market became “rigged”

Re:A veteran programmer explains how the stock market became... by ubernostrum on Monday April 07, 2014 @07:46AM (#7545895)

If you believe the description is wrong, your issue is with the article.

Direct quote from article:

With Reg NMS, it essentially took x amount of available stock at one place, and made it one tenth of that x at ten different places.

If that isn't a regulation forcing large purchases to split up, then it's on you to explain why.

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Re:A veteran programmer explains how the stock market became... by yummyfajitas on Monday April 07, 2014 @08:34AM (#7546077)

The most charitable interpretation of that quote is that after RegNMS, multiple trading venues became legalized. Liquidity providers then chose to spread liquidity out because it was now legal.

Here is RegNMS. Find me a place where it says liquidity must be divided between all possible exchanges: https://www.sec.gov/rules/final/34-51808.pdf

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Re:A veteran programmer explains how the stock market became... by ubernostrum on Monday April 07, 2014 @09:09AM (#7546237)

If you believe the description in the article is wrong, then as I said your problem is with the article.

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Re:A veteran programmer explains how the stock market became... by theorique on Monday April 07, 2014 @08:51AM (#7546164)

Seller(s) of stock are not required to place shares on different exchanges. This is a side effect of the process of trading, as the NBBO price bounces around to different venues.

If I offer 100,000 AAPL at NBO at exchange X, and you are willing to purchase 100,000 AAPL at NBO, your buy order matches mine exactly and the transaction takes place. This is highly unlikely, of course, that an enormous stock transaction like this ($50M) will take place this way.

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