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> > This is not 'front running', this is just other parties reacting to and executing on public market data before you. The term 'front running' is understood t
by growse 8y ago
> > This is not 'front running', this is just other parties reacting to and executing on public market data before you. The term 'front running' is understood to mean something specific, and different.
> I guess that depends on what you consider public market data.
Usefully, the regulators define it for us. No consideration needed.
> When an order hits an exchange, the exchange sends a flash order to the owners of the proprietary data feeds before sending the trade information out on the broader public markets, and making it available to all potential investors.
> It seems to me that the owners of those feeds have advanced knowledge of non public data.
Can anyone buy one of these feeds? If so, it's public data.
"Non public" means something very specific (and different) in this context.
- drexlspivey 8y agoSemantics aside, the gist of the issue is: should exchanges offer faster data feeds as a service? In a perfect world the goal of an exchange should be to facilitate fair trading not to make money by allowing sharks to feed on the rest of the participants.
- princeb 8y agoanyone who wants the "faster feeds" are welcome to pay for it. hfts being able to trade on better infrastructure is no different from walmart being able to distribute soda to you at a fraction of the price they are retailing it at.
- kasey_junk 8y agoYou think those guys in colorful coats sitting in the pits just walked in and started trading for free? The exchanges have always had participants with more access to faster info than other participants. Electronic feeds & order gateways are orders of magnitude less expensive than the previous open outcry regime.