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That cringing sensation you got when you saw the scare quotes around "subversion repository" is the same feeling people in trading get when journalists write ab
by minimax 13y ago
That cringing sensation you got when you saw the scare quotes around "subversion repository" is the same feeling people in trading get when journalists write about HFT and algorithmic trading. You can see an obvious example in the article where Michael Lewis applies scare quotes to "dark pools."
- sgt101 13y agodark pools scare me a hell of a lot more than witches - possibly because the continued functioning of the financial system is more important to me than warts.
- phyalow 13y agohow, all they are is usually unlit "unadvertised" elob's?
- sgt101 13y agoI have no idea what you are talking about, but the reason they scare me is because they provide an opaque mechanism for trading that enables or allows the unmanaged exposure of major financial institutions. This means that the confidence that anyone can have in a particular counter party in a transaction is undermined - whether or not they are participating in these transactions, because we cannot know.
- phyalow 13y agoMost markets are regulated in such a way that unlit venues have to report executions back to the lit market. Also most alternative venues will operate through clearing houses (the same as lit public markets). The risks you mention are real but as mentioned most sophisticated markets have regulations and rules in place to mitigate them - after all a darkpool or crossing network that failed to find quality and non flakey contra parties doesnt present a compelling case for its use!