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The sheer number of market making trades provides ample cover to hide some of the less legit trades if/when regulators come a-knocking. As you said, market mak
by crdoconnor 9y ago
The sheer number of market making trades provides ample cover to hide some of the less legit trades if/when regulators come a-knocking.
As you said, market making is super low profit.
HFT certainly used to be a fairly rich source of profit. Not sure if what it's like these days.
This is all probably just a coincidence.
- cryptonector 9y agoRegulators should audit regardless. It's not like we should want lower volumes just to make it easier on auditors. We can't exactly go back to 1920s tickers so as to have lower volumes...
- crdoconnor 9y agoRegardless of whether they audit or not, it's germane to recognize that something is off when a supposedly low profit activity is actually generating quite a lot of profit.
- cryptonector 9y agoLow profit-margin x high volumes == potentially big profit. Nothing's wrong with that.
- crdoconnor 9y agoWhich would work if there were one or two players trading an incredibly high volume, but that neglects to consider a little thing called competition which annihilated those margins. Now that doesn't matter so much if you're essentially using those high volume trades as an alibi. Zero profit is fine. All of this is an open secret. Hell, it's why dark pools exist. Those mean ungrateful dark pool customer fucks apparently decided that they didn't want all of that liquidity that HFTs were generously providing when they bought and sold. So rude.