On February 14, 2012 at 10:48am, someone stuffed KORS with quotes from multiple exchanges at rates exceeding 18,000 quotes/sec. What is the purpose of blasting hundreds of thousands of quotes to millions of computers around the world in a single stock that had a few hundred trades at the time? Why is this tolerated?
Category: High-Frequency Trading
To Regulate Rapid Traders, S.E.C. Turns to One of Them
With the Tradeworx program, the agency will gain access to every bid to buy stocks and every offer to sell shares on each of the nation’s 13 public exchanges. The system, akin to an X-ray machine for the stock market, could enable regulators to detect whether trading firms are overwhelming the market’s plumbing when they rapidly submit and cancel orders.
The Rise of the HFT Machines
The potential cost is huge; the short-term benefits are minuscule. Let’s give HFT the funeral it deserves.
4549 Words In 20 Milliseconds
Deep dive into the world of algo-trading :
In a mere 20 milliseconds, the world’s ‘traders’ had managed to read Bernanke’s 4549-word script, interpret it (as bearish in this case – which apparently is wrong now?) and start to sell down the major equity indices.