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If your system has poorly thought out rules, it can be gamed. If these rules also go against market pressures, it will be gamed. I'd argue that in the case of t
by wyager 11y ago
If your system has poorly thought out rules, it can be gamed. If these rules also go against market pressures, it will be gamed. I'd argue that in the case of these absurdly complicated SEC rules, it should be gamed.
If your stock exchange system (including the technical and legal aspects) needs a bunch of weird hacky proscriptions on user activity, then it deserves to fail.
- kasey_junk 11y agoAnti spoofing laws can be described in a single sentence. There is nothing complicated about them. I'm having trouble coming up with a single rule you could make about trading that wouldn't count as a weird hacky proscription, if you view spoofing as weird and hacky.
- bd_at_rivenhill 11y agoThey can be described in a single sentence, but detecting the difference between spoofing and legitimate activity can be very difficult, especially when some participants are trading cross-border and cross-asset; their orders are reacting to events which are not local to the exchange where they occur and legitimately change at a high rate because they are being affected by many different factors.