"US stock market is rigged by high-speed traders, says Michael Lewis"
Author of The Big Short says in his latest book that high-frequency trading is costing other investors billions of dollars
"The US stock market is rigged in favour of high-speed electronic trading firms, which use their advantages to extract billions from investors, according to the acclaimed author Michael Lewis.
In his new book Flash Boys: A Wall Street Revolt, Lewis says that firms are using their speed advantage to profit at the expense of other market participants to the tune of tens of billions of dollars.
"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," Lewis, whose book is available on Monday, said on the television program 60 Minutes on Sunday.
"This speed advantage that the faster traders have is milliseconds, some of it is fractions of milliseconds," said Lewis, whose books include The Big Short and Moneyball.
High-frequency trading (HFT) is a practice carried out by many banks and proprietary trading firms using sophisticated computer programs to send thousands of orders into the market in an instant, executing a small portion of them when opportunities arise to capitalise on price imbalances, or to make markets. HFT makes up more than half of all US trading volume.
The trading methods and technology that make HFT possible are all legal, and the stock exchanges HFT firms trade on are highly regulated. "
Source: US stock market is rigged by high-speed traders, says Michael Lewis | Business | theguardian.com
AtW's comment - super fast buying or super fast selling is ok, what's not ok is to do both many times over in order to gain advantage - this results in manipulation of market as with leverage it shifts where people with HFT want it to be, hence a transaction tax should be levied to stop peopel taking quick penny profits multiplies by billions of transactions.
AtW in "anti-shorting since before it was cool" mode.
Author of The Big Short says in his latest book that high-frequency trading is costing other investors billions of dollars
"The US stock market is rigged in favour of high-speed electronic trading firms, which use their advantages to extract billions from investors, according to the acclaimed author Michael Lewis.
In his new book Flash Boys: A Wall Street Revolt, Lewis says that firms are using their speed advantage to profit at the expense of other market participants to the tune of tens of billions of dollars.
"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," Lewis, whose book is available on Monday, said on the television program 60 Minutes on Sunday.
"This speed advantage that the faster traders have is milliseconds, some of it is fractions of milliseconds," said Lewis, whose books include The Big Short and Moneyball.
High-frequency trading (HFT) is a practice carried out by many banks and proprietary trading firms using sophisticated computer programs to send thousands of orders into the market in an instant, executing a small portion of them when opportunities arise to capitalise on price imbalances, or to make markets. HFT makes up more than half of all US trading volume.
The trading methods and technology that make HFT possible are all legal, and the stock exchanges HFT firms trade on are highly regulated. "
Source: US stock market is rigged by high-speed traders, says Michael Lewis | Business | theguardian.com
AtW's comment - super fast buying or super fast selling is ok, what's not ok is to do both many times over in order to gain advantage - this results in manipulation of market as with leverage it shifts where people with HFT want it to be, hence a transaction tax should be levied to stop peopel taking quick penny profits multiplies by billions of transactions.
AtW in "anti-shorting since before it was cool" mode.
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