4 ms·

Show me a regulated market that is free of front-running. It doesn't exist.

by chrisco255 5y ago

BobbyJo 5y ago
Lesser evil?
- viro 5y ago
  are you saying that front running is better than regulation?
  - ironSkillet 5y ago
    They are saying the occurrence of front running in a regulated market is a lesser evil compared to the absolute shitshow of scams and con games that play out in an unregulated market.
rurp 5y ago
There are varying degrees of front running and a well regulated market will generally have much less of it. It's kind of like saying "show me a market without corruption". Obviously all markets have some amount of shady behavior, but it hardly means every market is equally corrupt.
- tootie 5y ago
  Show me a human endeavor of any kind free of corruption.
wussboy 5y ago
So, because we cannot eliminate every issue with regulation, we shouldn't have any regulation? Surely the answer is in "just the right amount" of regulation. Getting to this sweet spot is a process, but one human societies have been approaching for some time. We would be foolish to throw out all that effort because it couldn't be perfect.
- chrisco255 5y ago
  What does that even mean in this case? There is no regulation against front-running. Take the stock market for example. Everyone knows that high frequency traders moved all of their infrastructure to be as close as possible to Wall Street to get sub-second advantages on trades. No one batted an eye. Of course, could you stop it if you tried? Information is asymmetrically distributed someone will always find and exploit an advantage somewhere and it's impossible to be fair. Everyone knows that Wall Street got bailed out in 2008 by the very same regulators you say are for our own good. Everyone knows Wall Street and Black Rock got the biggest squeeze from the Covid stimulus. In return we got $1400, 10% inflation, and a drop in real income. And front-running still happens. Hell the whole business model for Robinhood, the app, which charges zero trading fees, is to package up their retail users trades and sell the orders to high frequency traders who will squeeze out profits from front running or sandwiching the orders. Also, everyone knows that Congress does insider trading and the speaker of the House is the worst offender. Everyone knows that the revolving door that moves between regulators and the financial sector is incestuous. The regulations you praise are written by the lobbyists and companies who benefit the most. And I'm not in that club. Maybe you are and that's why you defend it. But it ain't me.

Show me a regulated market that is free of front-running. It doesn't exist.

BobbyJo 5y ago

Lesser evil?

viro 5y ago
are you saying that front running is better than regulation?
- ironSkillet 5y ago
  They are saying the occurrence of front running in a regulated market is a lesser evil compared to the absolute shitshow of scams and con games that play out in an unregulated market.

rurp 5y ago

There are varying degrees of front running and a well regulated market will generally have much less of it. It's kind of like saying "show me a market without corruption". Obviously all markets have some amount of shady behavior, but it hardly means every market is equally corrupt.

tootie 5y ago
Show me a human endeavor of any kind free of corruption.

wussboy 5y ago

So, because we cannot eliminate every issue with regulation, we shouldn't have any regulation? Surely the answer is in "just the right amount" of regulation. Getting to this sweet spot is a process, but one human societies have been approaching for some time. We would be foolish to throw out all that effort because it couldn't be perfect.

chrisco255 5y ago
What does that even mean in this case? There is no regulation against front-running. Take the stock market for example. Everyone knows that high frequency traders moved all of their infrastructure to be as close as possible to Wall Street to get sub-second advantages on trades. No one batted an eye. Of course, could you stop it if you tried? Information is asymmetrically distributed someone will always find and exploit an advantage somewhere and it's impossible to be fair. Everyone knows that Wall Street got bailed out in 2008 by the very same regulators you say are for our own good. Everyone knows Wall Street and Black Rock got the biggest squeeze from the Covid stimulus. In return we got $1400, 10% inflation, and a drop in real income. And front-running still happens. Hell the whole business model for Robinhood, the app, which charges zero trading fees, is to package up their retail users trades and sell the orders to high frequency traders who will squeeze out profits from front running or sandwiching the orders. Also, everyone knows that Congress does insider trading and the speaker of the House is the worst offender. Everyone knows that the revolving door that moves between regulators and the financial sector is incestuous. The regulations you praise are written by the lobbyists and companies who benefit the most. And I'm not in that club. Maybe you are and that's why you defend it. But it ain't me.