Watch As HFT Debate Devolves Into Epic Screamfest In Milliseconds

www.zerohedge.com...

I'm not pretending to understand much of this, it is way out of my league.

The gist of what the vid is all about is......

The clearly agitated BATS CEO came out swinging, blasting Katsuyama and Lewis "Shame On You," for apparently telling the truth of what occurs in the stock 'market and letting everyone in on it'. The tension grows when he presses Katsuyama on whether he really believes it is rigged... who then erupts "I believe the markets are rigged.. and that you are a part of the rigging." Then the gloves come off "you wanna do this, let's do this!" and then it got worse (or better)...

Just the first 3 minute round in this epic clip is worth the price of admission (and note the floor traders cheers in the background)... but to watch the status quo crushed under the awesome honesty of reality as this is all exposed, watch on..

Enjoy the show, I did, I had to watch it three times to get an understanding.

keenasbro
Watch As HFT Debate Devolves Into Epic Screamfest In Milliseconds

I'm not pretending to understand much of this, it is way out of my league.

The gist of what the vid is all about is......

The clearly agitated BATS CEO came out swinging, blasting Katsuyama and Lewis "Shame On You," for apparently telling the truth of what occurs in the stock 'market and letting everyone in on it'. The tension grows when he presses Katsuyama on whether he really believes it is rigged... who then erupts "I believe the markets are rigged.. and that you are a part of the rigging." Then the gloves come off "you wanna do this, let's do this!" and then it got worse (or better)...

Just the first 3 minute round in this epic clip is worth the price of admission (and note the floor traders cheers in the background)... but to watch the status quo crushed under the awesome honesty of reality as this is all exposed, watch on..

Enjoy the show, I did, I had to watch it three times to get an understanding.

er um......link?

reply to post by stirling

Sorry I put it up.

keenasbro
reply to post by stirling

 

Sorry I put it up.

The link he posted is for the website, not the article. Here is the proper link Link

andr3w68

keenasbro
reply to post by stirling

 

Sorry I put it up.

The link he posted is for the website, not the article. Here is the proper link Link

Link doesn't work properly. No video is shown.

Apparently this happened nearly five years ago...

Why is it all of the sudden in the "News" now?

andr3w68

keenasbro
reply to post by stirling

 

Sorry I put it up.

The link he posted is for the website, not the article. Here is the proper link Link

Thanks....hellova debate I must say.......it do appear to be rigged to me.....I think the new exchange is a good step towards fairplay.....

reply to post by Murgatroid


The date on the videos clearly state 01 April 2014

www.zerohedge.com...

That's the best 20 minutes I've seen on CNBS in years. Certain venues and organizations have bee SCREAMING about HFT for years. Zerohedge as an alt-financial news site, the Market Ticker blog, and market research firm NANEX have been loudly talking about the shadiness of HFT for as long as I've been aware them.

(You should have probably posted this over in Global Meltdown, might get more views and comments there).

reply to post by jefwane


Thanks jefwane. I wasn't sure where to post it, hopefully the mods will pick up the mistake

I'm not pretending to understand much of this, it is way out of my league. - See more at: www.abovetopsecret.com...

reply to post by keenasbro


I'll try and give it to you in plain english. High Frequency Trading is a process where some very advanced computer algorythms are used to front run trades. These programs "buy" and "sell" shares in nanoseconds....but nothing is really bought or sold....no product or money ever changes hands.

The problem lies in the false impression that markets are moving...that there are increased/ decreased volumes of trading in a particular stock ect. By doing this at incredible speeds, they are able to effectively "skim" the markets....making anything from fractions of a cent, to dollars off trades that never really existed. Do this day in and day out at fast enough speeds and you can make a boatload of money by basically "manipulating" markets.

It is the financial equivalent of stealing money for absolutely nothing. It should be outlawed. It serves no purpose whatsoever other than to allow big banks and traders to fleece anyone who doesn't have access to these systems. It creates much more market volatility and basically assures that there are no such thing as stable pricing....or stable markets.

He who has the fastest computers and data transmission wins.

It is the latest salvo in the "race to zero," traders' term for their efforts to whittle away the difference between the speed their orders travel at and the speed of light. Zero, the point at which that difference would disappear, has become a kind of holy grail to computerized traders, for whom nanoseconds—billionths of a second—can spell the difference between profit and loss in their algorithm-driven trades.

In recent years, so-called high-frequency trading firms, which account for about half of U.S. stock trading, have adopted first custom-built fiber-optic cables, then microwave and later millimeter-wave transmissions. Networks built on all three technologies operate today, tying together exchanges around the U.S. Internationally, fiber-optic cables laid across the oceans link America's markets with Europe's and Asia's.

Source

reply to post by deadcalm


Thanks deadcalm, that explanation was in fact in plain English.

So you have the fast computer and buy at x price, I have the slow computer and I buy at an elevated price, seconds or minutes later and pay cents or dollars more.

Have I got my head around this?

I can understand the stock market is a game of risk but obviously not a level playing field if the greedy bastards are manipulating it..

Give me strength, don't you just want to hurt these people.

Have I got my head around this?

reply to post by keenasbro


Indeed you do.

Give me strength, don't you just want to hurt these people. - See more at: www.abovetopsecret.com...

In the worst way. HFT is parasitic....it adds no value at all. As you rightly said...playing the market is risky...but not for the big players who have the added bonus of being able to dump their junk on the taxpayer....reaping the benefits on the up side and getting the taxpayer to bail them out at .25% interest if things go south.

A sweetheart deal indeed.

Excellent post BTW....more folks need to understand just how manipulated markets are....they are anything but "free". The LIBOR scandal is one you should read a bit about if you want to see just how bad it really is.

reply to post by keenasbro


This information is an eye-opener for me and spelled out so even an average joe like me can understand it. Thanks for sharing this video and info.

reply to post by deadcalm


Thanks for the plain english description.

reply to post by keenasbro


that was a very entertaining exchange, you can tell the ceo is pissed cause they have exposed the operations that were profiting him,

im looking forward to buying some stock of the IEX Exchange itself once it becomes public sometime this year (exact date TBA)

There is a positive angle to this story.

Brad Katsuyama et.al. understood HFT better, and before most everyone else. He was in a position to make millions or billions personally by saying and doing nothing but participating. Instead they stood up and said "This is wrong, and we are going to try and fix it".

Then they did.

Katsuyama could have stayed at the Royal Bank of Canada and cashed in big time. He is part of an international group of individuals that have chosen to do the right thing. Canadian, Russian, Irishman and Chinese immigrants to the US have come together to do the right thing for their adopted country and the greater financial world.

The glass is at least half-full.