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That's why I said I agree that the markets are broken. The SEC already knows that this occurs but chooses to not stop it.
by lotsoflumens 11y ago
That's why I said I agree that the markets are broken. The SEC already knows that this occurs but chooses to not stop it.
- yummyfajitas 11y agoVirtu cannot front run; they are not a brokerage. Folks like E-Trade are the ones who could potentially front-run. Do you have any evidence that they are?
- lotsoflumens 11y agoDo you understand the purpose of paying for order flow?
- yummyfajitas 11y agoYes - you get to trade with uninformed guys making small trades (i.e., folks too small to front-run) rather than informed traders with large amounts of adverse selection. Do you understand the mechanics of paying for order flow? could you state explicitly (i.e., a sequence of trades) how you believe paying for order flow allows you to "front-run"?
- deadgrey19 11y agoEither that. Or front running (in the technical sense) is not happening. If it were, other HFT's would pounce at an opportunity to declare a cheat. Occams razor suggests that systemic corruption within the SEC is less likely than the probability that trading operations are operating legally (especially in Virtu's case since they do not even have clients!).