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> Retail traders are simply not affected by things like this. It's the HFT/market making firms that would be most damaged. I won't believe this without a citat
by spaced-out 6y ago
> Retail traders are simply not affected by things like this. It's the HFT/market making firms that would be most damaged.
I won't believe this without a citation to an academic study. This affects the underlying price of raw materials, which has a direct impact on the stock price of companies using those materials. The stock price of many of those companies has a direct impact on people's retirement and the solubility of pension funds, among other things.
White collar crime does has victims.
- hammock 6y agoIndirectly it has a small effect, and the biggest effect is on short term speculators. This becomes clear if you dig into the specifics of this particular spoofing operation
- smabie 6y agoIt seems like you've made up your mind, even without an academic study.
- Supermancho 6y agoThat comment is unnecessarily inflammatory and is not constructive.
- x87678r 6y ago> This affects the underlying price of raw materials No it doesn't if you spoof orders it has only very short term effects.
- egwor 6y agoDepends what the instrument is and when. If orders are spoofed during the start of day or end of day auctions or during other specific times when indexes are calculated then this impacts the settlement prices which has a knock on impact to other features of the market. It’s like the LIBOR rigging and the FX manipulation.