My view of this IEX and Michael Lewis of 60 Minutes buzz on HFT
Some highlight from the NY Times articles below:
A) he had a safe and cushy $1.5-million-a-year job running the human traders, and B) RBC had nothing to add to electronic trading.
…together they set out to assemble a team to investigate the U.S. stock market.
Equitities. Not much opportunity there from my understanding.
I do like their mantra but truly, US equities is small potatoes for REAL PROFITABLE HFT operations. From my internal contacts, most focus on futures and forex. Equity was abandoned 4 years ago as the markets became more efficient because of HFT. The ones you hear about are usually the crumb sucker little shops that recently got caught up in this industry.
As for IEX and studying their videos/website, I salute their approach but seriously, the real operators are long gone. With this whole buzz of Michael Lewis and IEX are no different than a bunch of journalists and authors trying to make a buck off the hype. Watch Bloomberg TV for more killer journalism I like. The serious players are into new arenas that no one knows about and will never know about including me.
I keep saying this, the NY Times article was good:
Real good in fact but is no different than Quantopian. No real trading shop would ever trust their strategies/models to reside on some cloud solution. Cloud works but it needs to be private that you own with no other fools trying to steal your ideas.
My take: Don’t get caught up in it. As said, the real trading operator know US equities is where the amateurs play. The profitable ones moved onto areas we know nothing about. Yes they are profiting and that is the end of that. Personally they don’t care about you nor do the sharks running those predatory algos. They are called market makers and virtually every broker has a huge division doing this. Don’t trust them except for the market neutral players out there.
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