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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsEx-Insider Calls High-Frequency Trading 'Cheating'
High-frequency trading particularly the practice of queue-jumping amounts to little more than cheating, former Wall Street insider Haim Bodek said Thursday in a CNBC exclusive television interview.
I felt, Im playing poker with a bunch of guys, and six months after Im losing over and over and over, they say, Were cheating. Didnt you know? Everyone knew. And my problem was after that, I thought that somehow, with my firm, that because I knew how these practices work, I could somehow trade around them. And I came to the conclusion that it is actually an unbeatable system right now, he said on Fast Money.
....................... more http://www.cnbc.com/id/49103708
High-Frequency Trading: It's Worse Than You Thought
High-frequency trading, which already has a sullied reputation, is even worse than the critics have charged, a new survey shows.
The Federal Reserve of Chicago recently asked 30 firms associated with the industry traders, exchanges, vendors and others to evaluate where HFT stands in the wake of a series of high-profile blowups.
While the central bank's analysts knew there were issues, what they found exceeded their expectations.
Industry pros reported a rash of out-of-control computer algorithms that power the HFT platforms. They admitted that speed is more important than safety. And they even went so far as to say that they actually wish the industry was more regulated but want the rules to be applied equally, something that may not be happening today.
"Market participants at every level of the trade life cycle reported they are looking to regulators to establish best practices in risk management and to monitor compliance with those practices," Carol Clark, senior policy specialist at the Chicago Fed, wrote in a summary of the survey's findings. http://www.cnbc.com/id/49102808
KamaAina
(78,249 posts)Make them pay a few pennies every time they churn a stock.
Budget problem solved. The rest of KamaAina 2016's platform to follow.
Kolesar
(31,182 posts)Giving up a few pennies on a transaction that is designed to make a scant gain would take away the incentive for High Frequency Trading. The number of trades would decrease, but I am ok with that.
No mention of that tax in the two articles, though.
There was a segment on NPR/ATC about settling a HF trading lawsuit a few nights ago.
hunter
(38,318 posts)Tax anything that's kept less than a year.
central scrutinizer
(11,652 posts)I love how they call owning stock for a few seconds "investing".
KamaAina
(78,249 posts)raouldukelives
(5,178 posts)But that doesn't really matter anymore. Support of any financial markets is supporting climate change. End of story. Your either against CC or your invested in Wall St.