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IEX
Apr 7, 2014 12:50:58 GMT -6
Post by dbcooper on Apr 7, 2014 12:50:58 GMT -6
Did anyone see the 60 minutes clip last week or read the New York Times magazine article on hi freq trading fraud? Is this going to change hi freq trading and will IEX become a vital exchange? Did anyone see Bill O'brien of BATS go at it with IEX's Katsuama on CNBC last week?
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IEX
Apr 7, 2014 13:09:13 GMT -6
Post by Presidential Immunity Cock on Apr 7, 2014 13:09:13 GMT -6
I read about this and watched a documentary on it a few weeks ago.. Pretty neat. The owners of that exchange basically figured out how to game the system when working (co-founder I believe)for one of those companies and created his own exchange that is gaining momentum to take that part out of the system so people couldn't use a speed advantage to make mad bucks.
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IEX
Apr 7, 2014 13:09:19 GMT -6
Post by BrainFerentz4Prez on Apr 7, 2014 13:09:19 GMT -6
I did see that. It was pretty interesting.
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IEX
Apr 7, 2014 14:53:49 GMT -6
Post by NotMyKid on Apr 7, 2014 14:53:49 GMT -6
I read about this and watched a documentary on it a few weeks ago.. Pretty neat. The owners of that exchange basically figured out how to game the system when working (co-founder I believe)for one of those companies and created his own exchange that is gaining momentum to take that part out of the system so people couldn't use a speed advantage to make mad bucks. anything that fucks the day traders is fine by me.
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IEX
Apr 7, 2014 16:06:14 GMT -6
Post by NOTTHOR on Apr 7, 2014 16:06:14 GMT -6
I don't know the deets of this shit, but I'm suspicious of the info being pumped out. I've heard some people say the HFTs are just extremely fast market makers who compete with each other for speed. So it used to be that if you called your broker to buy 100 shares of XOM, the bid may have been 50 and the ask may have 50.25. So the trade would happen with a market maker would close the deal at $50.25, so the buyer would have to wire $5025 (plus commish) to their broker, who would wire $5025 to the market maker and the market maker would wire $5000 to the seller's broker (who also got a commish). Those market makers were serious fucking heavy hitters on Wall Street and as you can see, when that spread is big, they can pocket a fuckload of money.
As shit got computerized, the trading increments became finer and stocks traded on eighths and then later sixteenths instead of quarters. I happened to work in a brokerage house the fucking day the NYSE abandoned fractions and suddenly, the spreads went from eighths (12.5 cents per share) or maybe sixteenths on really widely traded shares to liek 2 cents a share overnight (I heard a rumor of a grown man crying when he saw the spreads plummet when trading opened that day because he couldn't believe how fucked he was going to be once he couldn't fleece six and a quarter or 12 and a half cents off of every share that passed through his corner of the market).
In essence, the HFTs are risk free traders because they wait until there is a live bid and ask to fill and they'll play the market maker and as such they are capturing all that spread (which is now a penny for retail and a fraction of a penny for institutional traders). Obviously, Wall Street likes getting scooped on its own fucking action about as much as the mob likes getting scooped. Again, I don't know the fucking deets so I'm talking out of my ass here, but given that there is suddenly a cacophony of screams about the parade of horribles HFT causes and various calls for legislation, I wouldn't be the least bit surprised if some asshats from Wall Street are the ones actually pushing this shit so as to give the traditional market makers their phat fucking profits back. It sure as fuck wouldn't be the first time Wall Street has lobbied the shit out of Congress to make changes advantageous to it.
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IEX
Apr 7, 2014 16:15:04 GMT -6
Post by livingintheusa on Apr 7, 2014 16:15:04 GMT -6
Thanks Obama
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IEX
Apr 7, 2014 16:24:33 GMT -6
Post by livingintheusa on Apr 7, 2014 16:24:33 GMT -6
I have not read this book. But previously, the other ones have given me something to think about. When I saw him on TV he looked , well very worried
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IEX
Apr 7, 2014 19:26:43 GMT -6
via mobile
Post by Stan's Field on Apr 7, 2014 19:26:43 GMT -6
Zzzz
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IEX
Apr 7, 2014 19:27:23 GMT -6
via mobile
Post by Stan's Field on Apr 7, 2014 19:27:23 GMT -6
Zzzz
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IEX
Apr 7, 2014 19:47:23 GMT -6
Post by NotMyKid on Apr 7, 2014 19:47:23 GMT -6
also, take special note of all the aqua cabling labeled "Pretium". It's made by my boys at Corning, and it's my aqua product. suck a fat one, haters De plastx gets me hard.
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IEX
Apr 7, 2014 20:19:33 GMT -6
Post by dbcooper on Apr 7, 2014 20:19:33 GMT -6
also, take special note of all the aqua cabling labeled "Pretium". It's made by my boys at Corning, and it's my aqua product. suck a fat one, haters
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IEX
Apr 7, 2014 22:44:01 GMT -6
Post by Ginger on Apr 7, 2014 22:44:01 GMT -6
bread bag ties?
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