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Re:Norway Wealth Fund Outsmarts Flash Boys as Algorithms Aba... by lrm242 on Monday November 17, 2014 @03:33PM (#8620349)
Look, all this guy is saying is that he is paying someone else to take on the risk of executing his large orders. Block crossing networks and sell-side traders have existed for a long time. Hell, that's what Brad (IEX CEO and Flash Boys protagonist) did prior to starting IEX. This guy is saying: rather than use an order execution algo to get my trade done, I'm just doing a cross upstairs with some sell-side guy, paying them a known amount, and letting them deal w/ how to handle it on their side.

They aren't outsmarting anyone. They're simply transferring execution risk, and they pay handsomely for it, trust me.

Re:Norway Wealth Fund Outsmarts Flash Boys as Algorithms Aba... by wdewind on Monday November 17, 2014 @03:47PM (#8620432)
So why do they care so much? Are they literally paying more because the idea of HFT burns their cookies?
Re:Norway Wealth Fund Outsmarts Flash Boys as Algorithms Aba... by lrm242 on Monday November 17, 2014 @03:54PM (#8620481)
Because they suck at technology. Its easier and more justifiable to pay someone else to take on the risk and pension fund gets less variance in their execution costs.