High-Frequency Trading:- Corporate super computers cornering share markets

[webbtz3591]

they remove liquidity from market.

[sirraju1]

Really liked this presentation, Extremely well presented. Thank you.

[morganthecelt]

Thank you for your answer "GlobalPrison". I understand you can't make french subtitles. But maybe you could make english subtitles? It would allow to me to understand at 100% your good videos and for French people to work their English too. It would be great. (sorry for my English and thank you for videos)

[morganthecelt]

Je serai très reconnaissant à la personne qui reprendrait cette vidéo avec des sous-titres français. Merci

[GlobalPrison]

Check out Max Keiser's video 'Keiser Report -Bankers and Aliens' . Max and Stacey Herbert talk on the shredding of decades of documents by the SEC...

[rorybz]

The main problem I see with HFT is that when the volume is way up, the market price tends to be artificially inflated, and I think that is what is propping up the price of stocks right now. If HFT were to be suspended, the market value would drop precipitously and then settle at a much lower value, like DJIA 8,000pts. It wouldn't be bottomless.

Where is the SEC? They're bought and paid-for. See the recent document-shredding scandal, and Matt Taibbi's article about the SEC revolving door.

[rorybz]

The answer to countering the HFT predatory market-making program is very simple. The HFT market-making program is looking for repetition. The buyer is buying a fixed block size, and the target price for each block size is the same. What the buyer needs to do is randomize his share block size so that ultimately the total order is filled but none of the block sizes are equal, and then the buyer needs to randomize the price of the shares within a pricing window so the total amount spent is $25k.

[spectrader]

The only people this theory serves is undisciplined suckers, i mean "traders", who have no concept of risk or money mgmt whom also refuse to accept responsibility for their own actions and decisions to put their money at risk without at first doing a careful study and analysis of the instrument to be traded. RT to what somebody above posted, "Retail investors like me and you should thank these algo traders, they don't steal from us, and they allow us to have smaller spreads and more liquidity."

[StockMarketFunding]

High-Frequency Trading = recent market crash = where is the SEC!

[ukusapillage]

theres also other problems these computers buy huge amouts of really important products not shares but food cottn oil in large ammouts making the prices go up and making everyone pay much more giving the sense of scarcicity to make profit these banks like goldman dont want to buy them or hold them but sell them high making the ppl hhaving to pay much more for everything and making companies go bankrupt we get news like theres no food theres no oil etc and its lie they are cornering the market

[razrrlazrr]

That's why I quit trading stocks and now trade futures. More fair playing field.

[youtp007]

thanks so much..the trainer is excellent I must say, and funny too..loll

[YoungFinancialMedia]

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[charlottepenna]

THIS IS ILLEGAL AND WILL RUIN YOUR PRETTY PRETTY WORLD

[zbyszek21113]

Hey guys sorry to break it to you but the world is changing. from phone to mouse click to computers doing it for us you have to accept what is going on.

" WATSON IS THE FUTURE OF TRADING "

[zbyszek21113]

HEy guys sorry to break it to you but the world is changing. from phone to mouse click to computers doing it for us you have to accept what is going on.

" WATSON IS THE FUTURE OF TRADING "

[marchesedesade89]

Retail investors like me and you should thank these algo traders, they don't steal from us, and they allow us to have smaller spreads and more liquidity. What he is describing at first is called predatory trading, but trust me if I say that 99,9% of us will never even get in touch with them a single time in our lives...especially if you are selling the 15 shares you bought 20 years ago...

[GlobalPrison]

It's just illegal, effectively cornering the markets..And who knows how many selfish rogues are doing this, taking the money and disapearing from sight forever, with the money..tax havens welcome large depositors, and the money doesn't go back to the country or people it was taken from, it ermains hidden, in some rich corporate deposit box safe from the taxman. I don't think they do it to benefit us the small investors, if that's what you mean? We'll be bailing out banks again sooner or later..

[marchesedesade89]

@GlobalPrison Regulation has to be increased to avoid unfair behaviors, but still many researches has shown that HFT does not increase volatility in the long run and that they reduce spread. There's no way to provide the same access to everyone to the market, just imagine the time it takes for my order to physically travel from NY to Sydney and you see that equal access is impossible. Of course they don't do it because of this but to earn zillions of $

[GlobalPrison]

@marchesedesade89 -- But nobody really knows how many rogue operators there are across the World now catching on to this. If we add up a few hundred million syphoned off each day it could add up to a lot of money over the course of the next ten years...potentially hundreds of billions each year...trillions over 10 years.

Who really knows?? Maybe we should rub shoulders with some G.Sachs big wiggies and see how much they make from HFT . I read somewhere they make 100 million a day from HFT.

[marchesedesade89]

@GlobalPrison That's true, luckily the size of the investments on technology required for these strategies is so high that most of players are not able to afford it...moreover if you add increased competition, probably just big players will be able to use HFT, and hopefully they are more easily controlled. We'll see whether the SEC will come up with something (hopefully before 2050!) :D

Nice to talk to you! ;)

[ssg10]

@marchesedesade89 It is an illegal frontrunning, but SEC is too dumb and too busy watching porn at work to get into this type of high-tech frontrunning. They just have no staff smart enough for this. The smart staff already gets pulled and hired by GS, JPM, citadel, etc. When HFTs smell a market volatility, they will turn off and few real human market makers left to supply liquidity and then what happens ? FLASH CRASH like may 6,2010

[marchesedesade89]

@ssg10 Yep, that's why the SEC has to impose obligations also to hft firms like they impose to a normal market maker. In my opinion, I think that it is frontrunning, but not illegal, there will always be someone on the mkt faster, more informed than you. And they also pay lots of $ to have that type of advantage.

[KaliAndy2]

@marchesedesade89 they provide more liquidity only when its beneficial to them. its not about supply/demand anymore, only manipulation. buy size @ask and bids drop, spread widens and price drops. sell size, opposite happens. its nothing short of robbery. getting robbed 10 cents on 15 shares no biggie, try 1,000 shares 50 trades a day... HFTs are only good to their owners who write these programs to rip ppl off every single trade. markets were more efficient 10 years ago.

[GlobalPrison]

@KaliAndy2 - When a share plummets by 25%, 10 000 shares make flash traders huge profit when share price goes up. It's not only the usual suspects... You might have read the report on the C.I.A getting into buying/selling stocks and shares. If the C.I.A have an endless budget (the taxpayer), then they can buy and sell in mega-large quantity stock, the money is then banked into a hidden account and used to their discretion- hence they have funds when Congress might cut spending or deny funds...

[Dre4dwolf]

this should be illegal.

[stilonesy]

thats exaclty wot he is sayin ninuxy because it pings back n furth so quickly he has no chance to reach the right sellers but the HFT that sell to him at the highest algorithm.

[ninuxy]

I don't get it. If the original institutional investor keeps bidding for, say, $24.55, and HF trader picks up and keeps pinging higher and higher, say, $24.60, $24.68... $25.00 and canceling orders rapidly, then how does this HF trader goes out and "buys" all the shares to sell it to the original bidder? If HF can get all those shares, then why can't the bidder do the same?

[DrYenisun]

curse these bastard algo traders!....

[louielamson2000]

Stockbrokers Play High-Frequency Trading in Wall Street like Bingo “Kentucky Horse Race-Trading?” Pucker game in Casio at Lat Vegas?

Sep 15, 2010

[vineetits]

Brilliant

[bammbamm12]

Re Flash Trading - if the members had two hours to decide as opposed to a half second, would the degree of fraud be any greater?

[harshLesson]

this should be illegal

[dandelionmood]

That was very interesting and very clear too :) Thanks !

[HYorker]

great video. Thank you