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Innovation Should Make It Better
In the high frequency trading debate (HFT), proponents of HFT always trot out the same old meme’s. “But, when it was floor traded the people on the floor had an advantage.” Or, “Anyone can buy...
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The Realities of What HFT Does To Market Participants
Traders and brokers have a hard time commenting on public websites. There are rules against it from the SEC, CFTC, FINRA and other organizations. But they do comment privately to me in emails, and...
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HFT Isn’t The Elephant In the Room
It seems all the attorney generals of the country read Michael Lewis book and subpoenaed high frequency traders. Populism is not a way to regulate a market. Nobel prize winning economist Joe Stiglitz...
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Does The SEC Know What It’s Doing?
The SEC is going to ask HFT firms to register as broker dealers. I don’t think that is right, nor is it close to any sort of solution. The problem isn’t HFT. The problem is market structure....
View ArticleWho Gets What When
Recently read a book by Professor Alvin Roth. He is a Nobel Prize winner in economics. It was pretty interesting. His specialty is matching markets. The book is titled, Who Gets What — and Why: The...
View ArticleIs Software Eating the Market?
One of the great investing themes of our time is “Software is eating the world”. Most of the time we think of this in terms of low skilled workers. Ask an anesthesiologist how they like the new GE...
View ArticleThe National Cattlemen Say Markets Are Broken
Here is a letter from the National Cattlemen’s Beef Association to the CME. The reason I post it is not to indict CME. I post it because it is indicative of a lot of markets. The cattle market is...
View ArticleHigh Frequency Trading Does More Than Trade
One of the things that economist Tyler Cowan says is There are Markets In Everything. People have lost faith in markets but indeed there are markets in everything. Markets are the best way to...
View ArticleCME’s Speed
You might have seen this article in the WSJ yesterday about how trades are confirmed by CME. Some traders get confirmation before the rest of the market. They are able to exploit that information...
View ArticleClosing Up Shop Due To High Fees
Yesterday, legendary market maker Blair Hull announced publicly he was hanging it up. Hull was a tremendous trader. One of the originals at the CBOE. If you watch this documentary on the Crash of...
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