Robot Traders

[Bond]

Market Data Firm Spots the Tracks of Bizarre Robot Traders

Interesting info...

http://www.theatlantic.com/technolo...ts-the-tracks-of-bizarre-robot-traders/60829/

 

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[Guest3722A]

I'm not so sure as to the accuracy of the writers statements or really what he's trying to say because as an example this quote didn't sit with me so well:

"This is an extreme closeup of just one second of trading of the stock SHG, the Shinhan Financial Group. This is 760 quotes from a total of 10,000 made in 12 seconds. "

The reason why this didn't make sense to me is because the stock SHG barely trades 40,000 shares in a day which is light, and if these algos were to try to quote stuff investors by leading the bids down, the SEC would be all over them.

http://www.huffingtonpost.com/2010/07/31/quote-stuffing-manipulati_n_666251.html
http://www.zerohedge.com/article/sec-investigating-hft-quote-stuffing-and-sub-pennying
http://beforeitsnews.com/story/84/8..._Destroy_The_Entire_Market_At_Any_Moment.html

HFTs most likely are about to be crippled by regulation but to what extent is unknown. I personally hope it isn't too severe because I myself have been interested in learning more about it.