Tag: high frequency trading

"Flash Boys" author says the stock market is rigged

Posted on by The INO.com Team

In his latest book on Wall Street, author Michael Lewis claims the stock market is rigged - What do you think?

To get more background on Lewis' claim, you might want to check out this recent "60 Minutes" video clip.

Vote first, then share with us what you think and have the chance to win a brand new copy of "Flash Boys," the book that started the uproar on High Frequency Trading. You have to leave a comment in order to win a copy of the book. We will pick the most creative comment!

Do you think the stock market is rigged?

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The INO.com Team

FBI joins SEC in computer trading probe

Posted on by The INO.com Team

The FBI has joined securities regulators to tackle the potential threat of market manipulation posed by sophisticated computer trading strategies that have taken markets beyond the scope of traditional policing.

FBI agents have joined forces with a new unit within the Securities and Exchange Commission that examines hedge funds and other firms that are using algorithm trading strategies.

The SEC’s Quantitative Analytics Unit is looking at abuses that might arise from the emergence of high-frequency trading firms and the use of dark pool (off exchange) trading. Traders using these methods can manipulate the market by flooding it with quotes, known as quote stuffing, or placing millions of orders that are quickly cancelled, to drive others to trade in ways that benefit their position, a practice known as layering. Continue reading "FBI joins SEC in computer trading probe" →

Are High Frequency Traders Rigging the Stock Market?

Posted on by The INO.com Team

By Doug Hornig, Casey Research

High-frequency traders (HFT) have no interest in any company whose stock they're trading.

They don't care about its earnings, what sector it's in, nor who's on the board of directors.

They neither know nor care how it fares in technical analysis, and they don't give a damn about its long-term prospects.

Likely as not, they don't even know its name. Continue reading "Are High Frequency Traders Rigging the Stock Market?" →

High Frequency Trading: What’s The Real Story? An Answer to 60 Minutes

Posted on by lindsay

Today's guest post comes from our friends at Lightspeed Trading. In this article, Lightspeed's CEO, Steve Ehrlich, will share his thoughts and some analysis on high frequency trading inspired by a 60 Minutes episode. Please visit their site to learn more about Lightspeed and Steve Ehrlich.
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By Steve Ehrlich
Lightspeed Financial, CEO

October 27th, 2010 – Where does the blame for the financial meltdown lie? The public is looking for a scapegoat for the financial slowdown and regulators have found one for them… High Frequency Traders. This blame game is very similar to what occurred during the Great Depression of 1929 when short sellers in the stock market were singled out and vilified as the “cause” of the economic woes in the United States. Today, it’s hedge funds, dark pools, and high frequency traders that are being targeted as the prime cause of the financial trouble in the United States and around the world. Continue reading "High Frequency Trading: What’s The Real Story? An Answer to 60 Minutes" →