jm + sec   3

SEC vs April Fool's Day
I think that materiality means what it says, and if people or algorithms do dumb things with trivial information that's their problem. But markets are a lot faster and more literal than they were when the materiality standard was created, and I wonder whether regulators or courts will one day decide that materiality is too reasonable a standard for modern markets. The materiality standard depends on the reasonable investor, and in many important contexts the reasonable investor has been replaced by a computer. 
algorithms  trading  stock  stock-market  sec  materiality  april-fools-day  tesla  investing  jokes 
april 2015 by jm
Nanex: "The stock market is rigged" [by HFTs]
All this evidence points to one inescapable conclusion: the order cancellations and trade executions just before, and during the trader's order were not a coincidence. This is premeditated, programmed theft, plain and simple. Michael Lewis probably said it best when he told 60 Minutes that the stock market is rigged.


Nanex have had enough, basically. Mad stuff.
hft  stocks  finance  market  trading  nanex  60-minutes  michael-lewis  scams  sec  regulation  low-latency  exploits  hacks 
july 2014 by jm
Lone Sale of $4.1 Billion in Contracts Led to ‘Flash Crash’ in May
'as the computers of the high-frequency traders traded contracts back and forth, a “hot potato” effect was created, the report said, as contracts changed hands 27,000 times in 14 seconds, but with eventually only 200 actually being bought or sold.' upshot: horrifically complex distributed feedback loops now directly impact our economies -- great :(
distributed-systems  distcomp  flash-crash  stock-market  trading  automation  via:nelson  sec  nyse  high-frequency-trading  from delicious
october 2010 by jm

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