5 replies to this topic

[dasein]

we are really safe now, sure, even though these guys are still at large - (links thanks to the poster on another board):

who can best do the arb using their own dark pools??? - flash crash 2? http://www.businessi...-purpose-2010-8

why not pay the SEC a 4% fine, if youre gonna win 14 million on an insider tip?
http://www.businessi...-purpose-2010-8

klh

[Mr Dev]

my take ....publicity hound looking for attention.

how does this make any sense, with the markets trading on such moderate to low volume ?


Hunsader is coming from the camp of investors and traders who believe that high frequency trading is harming the market by flooding it with quotes that it never intends to trade on.
Read more: http://www.businessi...8#ixzz0yOeaN0Jk

either way the markets are tradable day to day, ranges contract and expand ,... it's just how markets move, nothing new there.

Edited by Mr Dev, 02 September 2010 - 01:09 PM.

[arbman]

It is a bit unjustified in that the market was already fragile back in May and perhaps the algos accelerated the decline, that's about it. Without Fed support to take it above 1200, this market could never see over 1150 anyway since January... Certainly the market was not brought down by the algorithms, there was no volume and heavy resistance around those prices...

As for the transaction tax to prevent these, I think the better way to regulate is to limit the number of messages the firms can send that may be deemed "confusing" for the exchange mechanisms, for example limit the message volume at any given 5 minute period without actually trading anything...

[dasein]

arb, the market was fragile, but that is just the time to manipulate if you can - the ability to cram the system to create an arb opp is illegal and manipulative - period. as to the transaction tax, i agree completely - very bad idea - better idea is to limit the trades per time period to an amount whereby it will stay within capacity. but our congress seems to want a transaction tax and they may well use anything they can get their hands on to push it through

Edited by dasein, 02 September 2010 - 02:03 PM.

[dasein]

Ben is surely a master - latest "clarification" to Congress - "Fed could not save Lehman"

http://www.bloomberg...ing-lehman.html

[arbman]

Chairman Bernanke always believed that the deflations are preventable and he let the crisis deepen by overly inflating from 2005 till the 2007 top. He now admits that adding more debt will have the long term consequences... He should instead acknowledge that he irresponsibly spent away the money that the country never had... Of course, this bear market will resume and get to the bottom of the facts. For now, I think we will sadly watch the US Treasuries and USD collapse during this last bid to save the equity markets...

Edited by arbman, 03 September 2010 - 10:10 AM.