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TD Bank CEO wants U.S. to curb high frequency trading
Yahoo Finance ^

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 ...


TOPICS: News/Current Events
KEYWORDS: finance; investing; stocks
These people cheat the system. I have followed the markets for years and just recently learned where some institutions are front running stocks in the milliseconds after the markets close. Believe it or not, for a few milliseconds after 4:00 these people are still trading, and they can act on things such as earnings releases in those milliseconds.

That kind of crap needs to be abolished.

1 posted on 04/04/2014 6:04:38 AM PDT by Red in Blue PA
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To: Red in Blue PA

Members of Congress can legally engage in insider trades.

Add that to the crap list.


2 posted on 04/04/2014 6:23:40 AM PDT by kidd
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To: Red in Blue PA

Nobody should live under the illusion that the stock market is an indicator of a sound economy, that’s for sure.


3 posted on 04/04/2014 6:37:28 AM PDT by Wolfie
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To: Wolfie
Nobody should live under the illusion that the stock market is an indicator of a sound economy

These days it is more an indicator of sound algorithms.
4 posted on 04/04/2014 7:01:26 AM PDT by Red in Blue PA (When Injustice becomes Law, Resistance Becomes Duty.-Thomas Jefferson)
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To: All

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.


5 posted on 04/04/2014 7:42:20 AM PDT by veracious
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To: Red in Blue PA

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..


6 posted on 04/04/2014 7:44:38 AM PDT by Vlaxo
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To: Vlaxo

What?


7 posted on 04/04/2014 7:46:14 AM PDT by Mr. Lucky
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To: Vlaxo

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.


8 posted on 04/04/2014 7:48:34 AM PDT by Red in Blue PA (When Injustice becomes Law, Resistance Becomes Duty.-Thomas Jefferson)
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To: Red in Blue PA

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


9 posted on 04/04/2014 10:12:32 AM PDT by Vlaxo
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To: Vlaxo

BS:

http://www.nanex.net/aqck2/4504.html


10 posted on 04/04/2014 10:47:01 AM PDT by Red in Blue PA (When Injustice becomes Law, Resistance Becomes Duty.-Thomas Jefferson)
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To: Vlaxo; All

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.

http://online.wsj.com/news/articles/SB10001424052702304450904579367050946606562


11 posted on 04/04/2014 10:48:59 AM PDT by Red in Blue PA (When Injustice becomes Law, Resistance Becomes Duty.-Thomas Jefferson)
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To: Red in Blue PA

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.


12 posted on 04/04/2014 12:21:13 PM PDT by Vlaxo
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To: Vlaxo

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.


13 posted on 04/04/2014 12:27:56 PM PDT by Red in Blue PA (When Injustice becomes Law, Resistance Becomes Duty.-Thomas Jefferson)
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To: Wolfie

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.


14 posted on 04/04/2014 12:37:37 PM PDT by Moonman62 (The US has become a government with a country, rather than a country with a government.)
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To: Red in Blue PA

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..


15 posted on 04/04/2014 1:25:48 PM PDT by Vlaxo
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To: Red in Blue PA
Believe it or not, for a few milliseconds after 4:00 these people are still trading, and they can act on things such as earnings releases in those milliseconds.

I don't believe it.

16 posted on 04/04/2014 5:58:24 PM PDT by Toddsterpatriot (Science is hard. Harder if you're stupid.)
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To: Toddsterpatriot

What don’t you believe? What I posted was proven.


17 posted on 04/04/2014 7:48:26 PM PDT by Red in Blue PA (When Injustice becomes Law, Resistance Becomes Duty.-Thomas Jefferson)
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To: Red in Blue PA
some institutions are front running stocks in the milliseconds after the markets close.

Do you know what front running means?

18 posted on 04/04/2014 9:06:44 PM PDT by Toddsterpatriot (Science is hard. Harder if you're stupid.)
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To: Vlaxo

You have no clue...


19 posted on 04/05/2014 1:51:13 PM PDT by thatjoeguy (Every law passed is one person forcing their morals on someone else.)
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To: thatjoeguy

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.


20 posted on 04/07/2014 4:57:37 AM PDT by Vlaxo
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To: Vlaxo

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.


21 posted on 04/07/2014 5:07:30 AM PDT by bert ((K.E. N.P. N.C. +12 ..... History is a process, not an event)
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To: bert

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..


22 posted on 04/07/2014 5:18:07 AM PDT by Vlaxo
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To: Vlaxo

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?


23 posted on 04/07/2014 5:20:55 AM PDT by bert ((K.E. N.P. N.C. +12 ..... History is a process, not an event)
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To: bert

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


24 posted on 04/07/2014 5:44:34 AM PDT by Vlaxo
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To: Vlaxo

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


25 posted on 04/07/2014 5:52:37 AM PDT by bert ((K.E. N.P. N.C. +12 ..... History is a process, not an event)
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