Regulators are meeting today to discuss possible controls on HFT… do you think this would be a good thing for equity markets?
When officials from 16 of the world’s securities regulators assemble on Friday in London for a round-table discussion on “high-frequency” trading and over-the-counter derivatives, it will be the biggest gathering of its kind yet convened to brainstorm on those issues.
If Bart Chilton, a commissioner at the US Commodity Futures Trading Commission, has his way, his colleagues will get tough on what he calls “cheetah” traders – so named because of the ultra-fast speeds associated with high-frequency trading, or HFT.
It’s depend the view you are. If you think you have access uniquely to the information just before fiew second than the others, it’s not very nice, because you work lot for developp a good and fast algorithm and you pay to have access to this information. So it’s innovation and it’s a good way.
But a most part of the market intervenants don’t developp this kind of process. And as on the market, the autoritaries try to equilibre the advantage you have by tax.
After this, in reality, it’s will be good if American, Chinese and European think that could be a good things… So I think in differents places in the world, you could do this ty pe of business.
For states il would be a good things because they need capital in the goal of having a good public financial with little bit solvability!
So fast calcul isn’t finish and states find cash!
Personally, the less gov. interfears with our trading the better. Let the free markets be free!
the problem here is that the trading platforms are flawed in their design and can be manipulated to create fraudulent trade statistics and share price valuation.
You dont have to believe me – just do a search for NANEX and STRANGE DAYS and you will see all of the evidence of this statement. http://www.nanex.net/FlashCrash/FlashCrashAnalysis.html
THE ONLY WAY TO FIX THIS IS A FUNDAMENTAL SHIFT IN TRADING PLATFORM DESIGN. These existing issues are tied to systems which provide a basis of inter-process flooding or manipulation.
My vision (as our CTO) of external reference-clock based timestamping ends this by the way – totally and permanently. How? Simple – it takes the responsibility for the time-as-evidence practice away from the HOST Operating System the applications are layered on. This provides its users with a one-stop OATS 7430 (Time Synchronization) practice complete with reporting evidence.
Why? The problems are today that systems can be overloaded and timestamps fudged through the practices therein. This causes things like NBBO Naked Shorting in plain daylight to occur because the evidence capture systems cannot react fast enough.
Our solution is simple – my team is installing clones of the US Timebase into various trading centers which are accurate to about 15 nanoseconds meaning they keep a finer grade of time than the Neutrino time-travel experiment at CERN did (they kept accuracy to about 50 nanoseconds so ours is about 3.3 times finer resolution that that) and we provide this over a 30 picosecond measurement window. We also expand their use to include OATS 7440 and FIX event capture and timestamping for FINRA compliance under OATS.
Wow – A US National Time Standard inside each trading center – it just doesnt get any better than this!
By the way for those who dont know – this means 15 nanoseconds of uncertainty – this is the envelope of standard deviation which surrounds the center-point (or on-time) marker.
Anyone interested in getting access to this system should contact me offlist but this is unique in the Securities World and up and running in Savvis NJ2 right now. That means also there is NIST UTC over PTP available there too… and we are the only source of this on the planet earth now.
What, until the next round of bailouts? Maybe when there aren’t companies that are too big too fail
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