Rigging at the speed of light

[ThomasSoerensen]

How does that work?
When I buy some shares I execute my order and it goes through immediately. Nobody knows about it until it reaches the stock exchange, and at that time purchase is instant.

So many incorrect assumptions in this post.

It's cute.

But, for your own safety, stay away as long as this is how you think things work.

Have a nice day and enjoy the lovely weather.

[EternalOptimist]

Private exchange (like LSE) can't do what it wants - there is regulation in place and HFT is one of the new things that should be made illegal or impractical (via CGT being over 100%).

AtW, how do you expect to convince someone with the handle SpontaneousOrder that ordering shares spontaneously is a bad idea ?

[KentPhilip]

How does that work?
When I buy some shares I execute my order and it goes through immediately. Nobody knows about it until it reaches the stock exchange, and at that time purchase is instant.

So many incorrect assumptions in this post.

It's cute.

But, for your own safety, stay away as long as this is how you think things work.

Have a nice day and enjoy the lovely weather.

It is lovely weather isn't it.
Now how about answering my question and rebutting my assumptions sunshine?

[AtW]

AtW, how do you expect to convince someone with the handle SpontaneousOrder that ordering shares spontaneously is a bad idea ?

I don't have the need to convince him.

[doodab]

I just don't understand where the determination to interfere in other people's business comes from? Don't you have anything better to do?

It comes from having to live with the externalities those business push on to the rest of us. You can't simply "go and trade elsewhere" to avoid the high speed arbitrage merchants. If you want to make that possible you need a whole new regulated market, and it makes a lot more sense to regulate the existing one.

[doodab]

Now how about answering my question and rebutting my assumptions sunshine?

Your order isn't fulfilled instantaneously. It goes into an "order book" where it's usually matched with a matching order (unless you bid / offer a silly price no one takes). It takes a little while. These guys have the speedy connections and computer power to do stuff in that fraction of a millisecond that makes them money at your expense.

Order Book - Description of Level 2 Market Data and Depth of Market

If it wasn't making them a lot of money they wouldn't be doing it, and it's money that is ultimately made at the cost of other market participants.