Wednesday, February 12, 2014
High Frequency Trading Publishes False Prices & Hides Layering Conspiracy
High frequency trading firms are in the news today. A Wall Street Journal article features new laser tower technology attempts by HFT traders at getting price discovery closer to zero time elapsed. If these guys can afford this type of investments then it speaks volumes how much money is made from front running orders. HFT accounts for 50% of all trading volume on U.S. stock exchanges. Since the HFT firms are only a relative handful in aggregate compared to the legitimate order- issuing investing community it follows that their documented 50% total of volume is by definition an illegal trust and self dealing criminal enterprise. And there is more. These roving de facto criminal traders who parse pennies to 4, 5 or more decimal points publish their trades only in round numbers. The layering of who is buying and selling in an effort to boost the price of the shares at the expense of legitimate orders should be forensically dissected but is hidden by round number publishing. There must be at least two trading firms to walk a stock up or down. There are probably more than that so it is a far reaching racket. They are stealing right under the noses of the S.E.C. The false reporting round numbers is cause for change , fines or jail time.
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