HFT has destroyed the markets.

how so, HFT is reactive rather than proactive.

HFT extracts money from the system without creating any actual value.

more liquidity, more trades, better spots, stronger brokerages and insurance.

I fail to see your point. sure you can't arb like you used to but that was more destructive than hft methinks.

>>1450570
>more liquidity

implying that the liquidity on the books doesn't just disappear as soon as it gets close to the inside bid/offer

IEX will be growing in popularity now that the SEC has approved it.

>Unlike other exchanges, IEX has instituted a 350-microsecond delay to execute trades, which the company says levels the playing field. Hunsader says data show that IEX has the highest percentage of trades filled at the midpoint between the bid and ask of any exchange, an indication of fairness.

>>1450687
Hunsader is the fucking man. I love that guy

>>1450687
Going out of your way to encourage human daytraders is like admitting you are running a fucking casino. What a joke.

>>1450704
"human daytraders" are a small percentage of the volume. What about funds and other institutional investors?

>>1450709
Institutional investors don't DAYtrade, they don't give a fuck about HFT bots.

>>1450716
They do place trades during the day. Of course they care about the HFT bots. If you were losing half a cent per share on a million share order, you'd be pretty pissed.

>>1450716
And also yes, institutional investors do "daytrade". You've obviously never actually watched any tape or worked in trading...

>>1450727
If they do they are institutional gamblers, not investors. Only the casino cares about their existence because they milk them for commissions.

>>1450737
>fell for the "trading is gambling" ideology

You do realize that most major banks have a proprietary trading desk, right?

>>1450746
>if an institution does it, it must mean the practice is beneficial for a market as a whole

Bear in mind I don't think gambling should be illegal. I just don't care if their existence is threatened and no one should go out of their way to accommodate them.

>>1450746
Not since the Volcker rule.

>>1450135
[citation needed]

Oh hi there trader's dilemma. It's been a while. Fuck off.

>>1450777
The Volcker rule allows banks to contribute to their funds as long as it's under 3% of the total capital. So yes, they still run these funds.

>>1450762
>invest in a mutual fund or ETF in your IRA
>fund manager has to pay an extra 1% every time he tries to buy a block of stock
>this happens for 30-40 years until you pull your money out for retirement
>thinking that doesn't have an effect on your personal returns

Ok, good luck with that.

>>1450916
>has to pay an extra 1%
Due to what?

Is there any actual evidence aside from 1-2 isolated meltdowns that shows HFT does any damage?

>>1451011
>http://www.nanex.net/NxResearch/ResearchPage/1/

Knock yourself out.

>>1451011
http://www.nanex.net/aqck2/4543.html

have you ever been caught in a flash crash? not fun.

>>1450979
>Boss tells me to buy 100k share in Exxon
>See a 100k offer sitting there
>Hit the buy key
>Order gets partially filled, and the block offer disappears
>Block offer reappears at a higher price
>repeat

thus is the life of an execution trader

File: 20121113.eDTG.09.34.17.000_1000ms.1.gif (45KB, 1200x800px) Image search: [Google]

45KB, 1200x800px

>>1451011

Nothing to see here people, HFT is fine, move along...