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Banning Some HFT Strategies Helped This Market Grow: Chart

39 点作者 randomname2大约 9 年前

7 条评论

Zenst大约 9 年前
I often wonder, why the need for speed. If stock markets updated once a day, would that really cause a problem?<p>The whole aspect of making updates faster, transactions faster will always lead to those who can afford it looking for an edge in speed and in most cases - getting it, aided or unaided.<p>But with such dysnimic speed any misdirection in price rise or fall can and has been in the past exhausebated and when you look at the impact again, wonder why so fast.<p>I can appreciete the fater exchanges operate the mroe transacitons and brokers just love commision, more transactions more commision and it was and always is a crux in any fiscal market.<p>Indeed the Llyods crash was due to many brokers factoring (watering down the pools of money in effect) risks (groups of insurance poiceys) so many times that when there was a big claim (asbestos) then the whole thing crashed as the pools of money to cover the insurance were eaten away so much by all this over factoring of the risks about with brokers taking a slice everytime it got passed about and reinsurance became a rererererereinsurance style affair that with so much commision taken out it was a financial timebomb awaiting to happen. Again can look more recently at mortgages and how companies polled those together as they do with insurance and reinsurance in much the same way. Though more case of hiding potentual asbestos risks in with less risker mortgages and the rest we all remember.<p>So can see why I do question the need for faster and faster stock markets when, too me daily would work and indeed even hourly. Would eliminate HFT and indeed make the whole market more stable and focused upon the companies and not what todays market become based upon somebody famous doing or saying something on twitter more then actual results.
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murbard2大约 9 年前
The problem isn&#x27;t HFT per se it&#x27;s adverse selection. Large trades are more likely to happen if the exchange discriminates in <i>who</i> participates in the exchange, not <i>how</i> they participate. Regulation NMS destroyed upstairs trading in the US and is effectively making such discrimination illegal&#x2F;impossible unless you operate a dark pool which cannot openly show prices.
jakozaur大约 9 年前
What if all stock market would adopt a strategy that orders are processed one per minute. Same way it works during opening&#x2F;closing market.<p>Some advantages:<p>1. All assets will be as liquid as they are now. Still got opportunity to buy&#x2F;sell 8 * 60 = 480 times per day.<p>2. Most of the HFT industry will be redundant. Instead of allocating super smart people on made up problem, they can solve more important social problems (e.g. robotics, curing cancer, aging, space exploration, high growth tech companies).<p>3. Less day trading, encourage long term perspective.
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ryporter大约 9 年前
It links to a slightly longer article [1], which provides a bit of detail, but doesn&#x27;t elucidate.<p>First of all, how do you only allow passive orders? If an order is marketable when it arrives at the exchange, then is it rejected?<p>Second, how does this resemble IEX&#x27;s speed bump? I&#x27;m very confused.<p>[1] <a href="http:&#x2F;&#x2F;www.bloomberg.com&#x2F;news&#x2F;articles&#x2F;2016-02-03&#x2F;this-upstart-market-hopes-to-grow-with-flash-boys-strategy" rel="nofollow">http:&#x2F;&#x2F;www.bloomberg.com&#x2F;news&#x2F;articles&#x2F;2016-02-03&#x2F;this-upsta...</a>
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chollida1大约 9 年前
Really, the article is one paragraph.<p>It quotes Doug Cifu, the head of the largest HFT firm in the world.<p>I don&#x27;t know much about Aquis strategy for growing their exchange but if its anything like the aequitas exchange that has just opened in Canada then they get inflated numbers by begin the exchange off record where some banks get paid to report their large block trades.
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epx大约 9 年前
As I commented in another related article, I think it in terms of &quot;nuclear reactors&quot;, whose reaction times are crafted to match human reaction times (tens of seconds). Trading could follow the same principle.<p>Compounding with that, some studies say that trading itself causes most (2&#x2F;3) of the volatility, so it is expected that µs-scale trading creates even more volatility.
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andylei大约 9 年前
great chart bloomberg<p><a href="http:&#x2F;&#x2F;tylervigen.com&#x2F;spurious-correlations" rel="nofollow">http:&#x2F;&#x2F;tylervigen.com&#x2F;spurious-correlations</a>