I beleive that arbitrage introduces greater liquidity and in formation to the market - which is a good thing.
Greg - 12 years ago
HF trading creams off the lowest prices available to normal buyers, the highest prices for normal sellers, thus potentially reducing the overall long-term results for traditional investors.
Colinm - 12 years ago
Pretty resounding result ... will ASIC or the ASX do anything ?
Geoff - 12 years ago
I'm not full bottle on law in these areas, but surely this practice could be challanged with an action (maybe a possible class action) under the "Trade Practices Act" as being discriminative and restictive of fair trade.
Hopefully a law firm experienced in this area could run a potentially lucrative action against the ASX and the the individual Co's they have given selective access to their system while deliberately restricting any possible access to the general traders, who are selectively disadvantaged financially by such arrangements.
The whole situation IS A GENERAL DISGRACE!
Get some spine PLEASE Aussie regulators!
David Roberts - 12 years ago
HFT is no more than two computers betting on two flies on the wall or in this case the movement of a share price. There should be more rules, bids should remain on the screen longer, bids shouldn't be in the dark zone that most people don't know about. HFT has no relevance to long term investing in a company. The solution is to bring back a transaction tax of 0.001% on every trade, for a long term investor this would mean an extra $10 on a $10,000 buy or sell over several months which is peanuts in the long term but $1000 on a $1million trade every few milliseconds - this would be great revenue for Wayne Swan to put into the kitty bank. HFT should be slowed down, ASX wouldn't like because of the loss of their income but it would make the market fairer. HFT computers and their algorithms seem to know exactly where my stop loss is set so that share prices shoot down for a millisecond, take you out and then reverse and pick up your shares cheaply. In my view HFT stinks and is subject to screwing the market in favour of those in control of the HFT computers.
Vishal - 12 years ago
HFT is total manipulation of stock prices to benefit a few powerful people. They pad prices of all Buy/Sell orders generating millions if not billions. HFT will never let you buy/sell anything at limit that you specify by looking at the bids/asks as by the time the order reaches the exchange the HFT will move the Bid/Ask unfavorably to you. How is this market making or help in market making, I fail to understand... And this happens not only is stocks but also in futures/options right infront of our eyes. And we naively accept this thinking that some person like us on the other side of the trade is trying to get a good price, and in microseconds and right after I hit the Send Order button and before the order reaches the exchange...
This should be totally illegal...
I beleive that arbitrage introduces greater liquidity and in formation to the market - which is a good thing.
HF trading creams off the lowest prices available to normal buyers, the highest prices for normal sellers, thus potentially reducing the overall long-term results for traditional investors.
Pretty resounding result ... will ASIC or the ASX do anything ?
I'm not full bottle on law in these areas, but surely this practice could be challanged with an action (maybe a possible class action) under the "Trade Practices Act" as being discriminative and restictive of fair trade.
Hopefully a law firm experienced in this area could run a potentially lucrative action against the ASX and the the individual Co's they have given selective access to their system while deliberately restricting any possible access to the general traders, who are selectively disadvantaged financially by such arrangements.
The whole situation IS A GENERAL DISGRACE!
Get some spine PLEASE Aussie regulators!
HFT is no more than two computers betting on two flies on the wall or in this case the movement of a share price. There should be more rules, bids should remain on the screen longer, bids shouldn't be in the dark zone that most people don't know about. HFT has no relevance to long term investing in a company. The solution is to bring back a transaction tax of 0.001% on every trade, for a long term investor this would mean an extra $10 on a $10,000 buy or sell over several months which is peanuts in the long term but $1000 on a $1million trade every few milliseconds - this would be great revenue for Wayne Swan to put into the kitty bank. HFT should be slowed down, ASX wouldn't like because of the loss of their income but it would make the market fairer. HFT computers and their algorithms seem to know exactly where my stop loss is set so that share prices shoot down for a millisecond, take you out and then reverse and pick up your shares cheaply. In my view HFT stinks and is subject to screwing the market in favour of those in control of the HFT computers.
HFT is total manipulation of stock prices to benefit a few powerful people. They pad prices of all Buy/Sell orders generating millions if not billions. HFT will never let you buy/sell anything at limit that you specify by looking at the bids/asks as by the time the order reaches the exchange the HFT will move the Bid/Ask unfavorably to you. How is this market making or help in market making, I fail to understand... And this happens not only is stocks but also in futures/options right infront of our eyes. And we naively accept this thinking that some person like us on the other side of the trade is trying to get a good price, and in microseconds and right after I hit the Send Order button and before the order reaches the exchange...
This should be totally illegal...