Skip to comments.TD Bank CEO wants U.S. to curb high frequency trading
Posted on 04/04/2014 6:04:38 AM PDT by Red in Blue PA
(Reuters) - Toronto-Dominion Bank Chief Executive Ed Clark said on Thursday he believes high frequency trading (HFT) gives an unfair advantage to some market participants and wants curbs by U.S. regulators.
HFT, in which sophisticated computer programs are used to send high volumes of orders to make markets or capitalize on price imbalances, has been criticized by some for giving HFT firms an unfair advantage over traditional traders.
"I'm not a fan of high frequency trading," Clark told reporters in Calgary after the bank's annual general meeting. TD is Canada's second-largest bank by market capitalization, with a large domestic franchise, as well as 1,300 branches in the United States.
(Excerpt) Read more at finance.yahoo.com ...
That kind of crap needs to be abolished.
Members of Congress can legally engage in insider trades.
Add that to the crap list.
Nobody should live under the illusion that the stock market is an indicator of a sound economy, that’s for sure.
The stock market is rigged for those on the inside, 15 minutes of lead time VS outsiders is making insiders immorally rich. *money*from*thin*air* is making all the oligarchs rich and has already mosty destroyed our once free Republic.
HFT DO NOT HAVE ANY ADVANTAGE OVER ANY OTHER TRADERS. They are market facilitators. They created the highly liquid markets that have allowed millions of average investors become successful retail traders..
This push against HFT is being perpetrated by the institutional investors, wall street firms and there enablers in the media. They see there golden goose of fees and sub-paar returns being threatened.
The markets are a penny wide.... Meaning you the retail traders are in direct benefit... And the only reason why there are a penny wide is because of the volume created by HFT.
google tastytrade... and listing to the man who is directly is challenging the way the retail investor invests..
So you believe that retail investors benefit from the fact that HFT’s can trade in the nanoseconds after 4:00 but retail investors cannot?
Please pass what you are smoking.
What you mention of taking advantage milliseconds after the close is not true. The market moves as fast as a human being can process the information in a earnings report. And i can guarantee you its not in milliseconds or nanoseconds or seconds. And even then you wont be able to predict what the particular underlying will do.
The stock market is 50/50 proposition... actually to be correct its a 53/47 proposition. Look up price efficiency models and black schoels
The trend, previously unreported, could help explain what happened on the afternoon of Dec. 5, when Ulta Salon Cosmetics & Fragrance Inc., ULTA -3.73% a cosmetics retailer based in Bolingbrook, Ill., released its earnings. At 4 p.m. EST, Ulta’s stock was changing hands for about $122 a share. Business Wire issued the company’s earnings, which missed analysts’ forecasts, about 150 milliseconds after 4 p.m., according to a person familiar with the timing of the release. A millisecond is one-thousandth of a second.
Within about 50 milliseconds, nearly $800,000 of Ulta’s stock was sold on stock exchanges in a series of rapid trades. But major news wires hadn’t yet distributed Ulta’s earnings, according to the news wires. Bloomberg News issued the release 242 milliseconds after 4 p.m. Dow Jones issued it 464 milliseconds after 4 p.m. Thomson Reuters Corp. TRI.T -0.08% issued the release about one second after 4 p.m.
About 700 milliseconds after 4 p.m., Ulta’s stock reached its closing price of $118 a share on the Nasdaq Stock Market, NDAQ -1.52% which incorporated the orders placed immediately after Business Wire and other news services distributed Ulta’s earnings, according to data analyzed by Nanex LLC, a market-data provider, and people familiar with the trading. Stocks often settle a few tenths of a second after 4 p.m. as Nasdaq’s computer systems seek to reconcile all trades.
SO your saying someone analyzed pages of earnings in 50 milliseconds and dumped 800,000. shares... please bud.. just because the WSJ or NYT WP create a narrative doesn’t mean its true.
The financial industries make 6% of GDP in fees and charges.. that’s allot of coin. and they have a ton to loose if the individual investor no longer needs to buy there shitty mutual funds and bond funds etc.. Technology has advanced where you the individual can do it yourself and be ten times more successful then some idiot in a suit selling you a line and taking there 2, 3, 4% from you a year.
Read the freaking article! I posted it direct from the WSJ!
Computers make the trades.....no one person analyzes pages of data.
You are either blind or willfully obtuse to the facts.
Firstly, the stock market is an indicator of Federal Reserve policy and liquidity in the financial system. After that it is an indicator of the economy.
No shit computers make the trades no one is arguing that... But you speak of unfair advanteges... Or excuse me the article speaks for you since you are incapable of articulating your own opinion and are pawning an article that is clearly agenda driven as the end all be all in the matter.
I am a succesffull retail trader and the liquidity that the HFT create add to my margins... And the circle of traders that i know say the same thing... I prefer to buy/sell at 1 penny margins with hft than the 50 to 100 penny margins withouGrr.. and if you speak to anyone who trades succesfully they will say the same thing..
I don't believe it.
What don’t you believe? What I posted was proven.
Do you know what front running means?
You have no clue...
if you say so... then it must be true.. But irregardless the retail trader still benefits from HFT. do you understand penny wide markets and how that would be beneficial to a retail trader.
The HFT traders pay for every trade. So long as they pay for the trade, how are they different. More trades, more trading fees.
More trading fees, lower profits.
correct the do pay fees the more business they do.. But the same can be said about any business. Lets take a cab company for instance. The more fares a cab company takes the more gas its burns. its all relative..
I offer the argument to counter those that whine about unfairness. The traders pay the fees same as everyone else.
They are paying for the privilege.
How then is that unfair?
Im not the one arguing that HFT have an unfair advantage. Its some of the other posters on this thread. I agree with you that they are paying for the privilege so all power to them. But i am also arguing that HFT are creating Highly liquid markets that benefit retail traders
I have been taught that if I buy at a price I set, I avoid any distortions that might occur with a market order.
That is, I get what I buy or have to do it over tomorrow