Dear Josh, It’s me: Josh…the You from 10 years from now, using the latest technology from Google to send an email to you from the future. Don’t freak out. Anyway, I’m just writing to let you know that the next ten years will be wacky, but everything turns out ok. For regulatory reasons, I obviously…
High Frequency Trading
Flash Trading R.I.P.
Oh, and spare me the arguments about “liquidity”… I applaud Mary Shapiro and the SEC‘s decision to put an end to this practice. On a basic level, high frequency or flash trading was no different than the rounding error scheme from the film Office Space whereby fractions of pennies “that no one would miss” would be…
Hot Links: Buffett vs HFT, Denninger vs Kneale, Iran vs Everyone
Stuff I’m Reading this Morning… Warren Buffett and Vanguard’s Jack Bogle come out against High Frequency Trading. (ZeroHedge) Consumers deleveraging big time. Not sure why this didn’t get more attention when announced yesterday, big story. (FTAlphaville) Iran is getting close to a big nuclear breakthrough…maybe Obama should have lunch with them or something, maybe a…
Tomorrow's Business Headlines?
I’m not saying these hypothetical headlines are likely, but I also wouldn’t fall out of my chair if one of ’em popped up in some variation or another. “JPMorgan’s Dimon Jealous Of AIG And Citi, Wants Back In To The TARP” “Four Hundred Percent Of All Homeowners Underwater On Two Hundred Fifty Percent Of Their…
More Hot Links: Deflation, Trading & the LEAF
More Hot Links for Weekend Reading… Tadas frames the High Frequency Trading debate in Life (and trading) is Unfair. Great post. (Abnormal Returns) Pimco positioning for the Fed not raising rates until 2011! Clearly, McCulley‘s in the Deflationista camp. (Bloomberg) Scariest thing you’ll read all day: 1.5 million Americans running out of time on their…
Paul Wilmott on High Frequency Trading
This is a very important perspective on what the rise of High Frequency Trading may mean to our markets and the companies that trade on them. The piece is short on empirical evidence but long on common sense. The main questions raised in the op-ed are: Is the liquidity argument that HFT proponents spout so…
Are You Paying a Hidden Tax to the High Frequency Traders
This is a developing story, but one which has all the potential to explode if the right people hear about it. I don’t have a strong opinion on this stuff yet, but I thought I’d put John Mauldin‘s take on the table and let everyone make up their own minds. From Thoughts From the Frontline:…
