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So are there systems out there making trades designed to confuse and make HFT systems do the wrong things? Could you make some move then others? Can you run g

• tptacek 11y ago
  Yes. For instance: all the recent drama about "layering" and "spoofing" fraud is about small (and surprisingly dumb) pieces of code that exist to trick electronic trading systems into trading against their owners interests. As for efficiency: it is sure as shit more efficient than when stocks were quoted in eighths, and market makers had a collusive agreement to not to quote odd eighths so they could pocket extra money.
• kasey_junk 11y ago
  Yes, absolutely there are many HFT systems trying to game other HFT systems. Some of them are using perfectly legal means and others are doing things that are less clearly legal. > Is this really the most efficient way to allocate resources...? A - Yes as far as we can tell. All the other options haven't worked nearly as well. B - Be very careful when assuming that the markets are about "allocating resources". That is a by-product of the markets. Their main purpose is about risk management.