High Frequency Trading

[EternalOptimist]

Myners

Does this mean a major shift to Alexis position ?


"It has gone too far, it has now lost its supporting function for the provision of capital to business and has become a game to be played."

<cough>
someone on here said this yesterday
<cough>

[HairyArsedBloke]

Myners

Does this mean a major shift to Alexis position ?

Unfortunately, probably yes.

Yes, there is a problem with the likes of Goldman front running. But forcing minimum holding times will cause distortions in the pricing of those assets as liquidity disappears. It's another one of those 'be careful of what you wish for' cases.

[SantaClaus]

I cant see anything wrong with high frequency trading.
It provides liquidity to the market.

[DimPrawn]

I cant see anything wrong with high frequency trading.
It provides liquidity to the market.

You would say that wouldn't you?

[ASB]

I cant see anything wrong with high frequency trading.
It provides liquidity to the market.

Perhaps one issue might be that is can potentially counterfeit the underlying stock. Depends on how much becomes failed to deliver - I think that is a significant problem in the states, but may not be so significant here. Somebody posted up an interesting article about it in the previous thread.

[SantaClaus]

Perhaps one issue might be that is can potentially counterfeit the underlying stock. Depends on how much becomes failed to deliver - I think that is a significant problem in the states, but may not be so significant here. Somebody posted up an interesting article about it in the previous thread.

Never heard that before, but interesting thought.