Reply to: Rigging at the speed of light

[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.

[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.

[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.

[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?

[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 ?

[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.

[AtW]

'That' market is made up of public AND private exchanges.

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%).

[KentPhilip]

"They are able to identify your desire to buy shares in Microsoft and buy them in front of you and sell them back to you at a higher price,"

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.

[SpontaneousOrder]

Those markets are regulated, it's not "can do what I want there and if you don't like it then don't join it".

Those HFT can do what they want in privacy of their home playing monopoly game where being monopoly is not only allowed but also strongly encouraged.

That market isn't private actually, it's very much public.

'That' market is made up of public AND private exchanges. But even then, publicly listed != publicly owned.
Private individuals own the exchanges, and private individuals freely choose to trade or not on any particular market.
Regulation is by the by. Our children are regulated - we are obliged to register their births just like we may be obliged to register ownership of cattle. That doesn't mean that our children are publicly owned.

I know we're no arguing about the difference between public/private - 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?

[AtW]

The point is that it's entirely voluntary, yet you complain that you don't like it and we should do something to change it. That's called bullying.

Those markets are regulated, it's not "can do what I want there and if you don't like it then don't join it".

Those HFT can do what they want in privacy of their home playing monopoly game where being monopoly is not only allowed but also strongly encouraged.

That market isn't private actually, it's very much public.

[SpontaneousOrder]

OMG, we can't have that!!!

The point is that it's entirely voluntary, yet you complain that you don't like it and we should do something to change it. That's called bullying.

[AtW]

Tax a private market?!

OMG, we can't have that!!!




Slap 110% CGT (yes you pay more than you gained) on such short term "deals".

Use it to fund free higher education courses for HFT dudes who will lose their jobs - they do deserve to get a chance to do something useful in their lifes.

[NickFitz]

Amazon shipped the book out to me yesterday, so I should have it later. Looking forward to it. I enjoyed Liars Poker and The Big Short.

[lukemg]

This is a significant concern, what should my portfolio (~10% p/a return) actually be earning ????
Russia ETF is up 5% in a month - dosverdanya comrade....

[SpontaneousOrder]

Tax a private market?!
How about just not trading in a market if you don't like it's rules, and trading on another instead?
Amazing what one can achieve with a little more thought and a little less violent impulse