8 ms·

University of Michigan researchers proposed a "centralized call market" to mitigate fragmentation (inconsistent pricing and order handling across different exch

by svedlin 12y ago

University of Michigan researchers proposed a "centralized call market" to mitigate fragmentation (inconsistent pricing and order handling across different exchanges) and latency disadvantages: http://www.ns.umich.edu/new/releases/21535-high-frequency-trading-tactic-lowers-investor-profits http://www.ns.umich.edu/new/releases/21535-high-frequency-tr... Haim Bodek discusses how certain exchanges provide special order types that give traders priority over others: http://online.wsj.com/news/articles/SB10000872396390443989204577599243693561670 http://online.wsj.com/news/articles/SB1000087239639044398920... Of course HFT is just a small part of the built-in asymmetries in the markets. Firms exploiting their own clients, conflicted investment advice, corrupt fund management, routinized insider trading, retail bucket shops, hidden fees, payment for order flow, specialist/MM privileges, etc. are all ways that investors and beneficiaries can be disadvantaged.

cma 12y ago
It's not just insider information that is a problem. Is the world really better off because UBS/hedge-funds hire out satellites to surveil Wal-mart parking lots in order to get an earnings prediction 1 day before Wal-mart files their public earnings disclosure?
- dclowd9901 12y ago
  Tell me you have a source for this.
  - cma 12y ago
    http://www.cnbc.com/id/38722872 http://www.cnbc.com/id/38722872 http://gawker.com/hedge-funds-are-now-poring-over-satellite-photos-of-wal-1327499137/all http://gawker.com/hedge-funds-are-now-poring-over-satellite-... wasn't necessarily goldman-sachs, changed the post
  - interknot 12y ago
    Skybox is already launching satellites explicitly for this purpose (and others): http://skybox.com/products#applications http://skybox.com/products#applications Scroll through to the "Financial Trading Intelligence". If only they had offices in places besides California...

by svedlin 12y ago

cma 12y ago

It's not just insider information that is a problem. Is the world really better off because UBS/hedge-funds hire out satellites to surveil Wal-mart parking lots in order to get an earnings prediction 1 day before Wal-mart files their public earnings disclosure?

dclowd9901 12y ago
Tell me you have a source for this.
- cma 12y ago
  http://www.cnbc.com/id/38722872 http://www.cnbc.com/id/38722872 http://gawker.com/hedge-funds-are-now-poring-over-satellite-photos-of-wal-1327499137/all http://gawker.com/hedge-funds-are-now-poring-over-satellite-... wasn't necessarily goldman-sachs, changed the post
- interknot 12y ago
  Skybox is already launching satellites explicitly for this purpose (and others): http://skybox.com/products#applications http://skybox.com/products#applications Scroll through to the "Financial Trading Intelligence". If only they had offices in places besides California...