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I see you ignored the fact that counterparties are actually only "benefiting" infinitesimally. Convenient. > I don't understand. Counterparties want to buy and

by jules 13y ago

I see you ignored the fact that counterparties are actually only "benefiting" infinitesimally. Convenient. > I don't understand. Counterparties want to buy and a predator is improving prices. How does this hinder them? That's not what I said. It's not the offers themselves that are hurting, it's the intentional clogging up of the exchange by the HFT traders which in effect locks out everybody else. > marginally increases market efficiency and causes small players to lose less money to the big boys As in trades get executed a femtosecond earlier and for a infinitesimally different price, if you conveniently ignore shady practices like clogging up exchanges? Yea, that is most definitely worth the big bucks the HFT traders are making on the other side of the transaction. /s > I just don't understand why everyone seems to think helping the big players is somehow socially beneficial. What's good for Goldman is good for America? You pick Goldman Sachs as an example because you know people will have an emotional reaction, and ignore pension funds etc. This is an argument designed to run on people's emotions. Besides, Goldman Sachs, unlike pension funds, is perfectly capable and in fact does do HFT of its own. Eradicating HFT is socially beneficial because it will (A) remove a bunch of wasted effort to be just a tiny bit faster than everybody else (B) remove the HFT middle man tax for investors who just want to trade with other investors.

yummyfajitas 13y ago
You claim the benefit is "infinitesimal" and I have no idea why or how you would claim this. It's not the offers themselves that are hurting, it's the intentional clogging up of the exchange by the HFT traders which in effect locks out everybody else. Exchanges don't get "clogged" except in rare cases like the facebook IPO. Goldman Sachs, unlike pension funds, is perfectly capable and in fact does do HFT Pension funds do run HFT in order to hide their trades. They either build it themselves or rent an algo from pipeline/etc. Look, you clearly don't know much about the topic beyond what you read on zerohedge. I'll leave you to it.
- jules 13y ago
  > You claim the benefit is "infinitesimal" and I have no idea why or how you would claim this. Where do we see all the genuine long term investors being happy with HFT because they benefit so much from them? That's right, they aren't. > Exchanges don't get "clogged" except in rare cases like the facebook IPO. Then why do HFT traders do this? > Pension funds do run HFT in order to hide their trades. They either build it themselves or rent an algo from pipeline/etc. Sure, as I said, either you lose to the HFT middle man, or you lose by having to invest in your own pointless infrastructure in the cat and mouse zero sum game.

by jules 13y ago

yummyfajitas 13y ago

You claim the benefit is "infinitesimal" and I have no idea why or how you would claim this. It's not the offers themselves that are hurting, it's the intentional clogging up of the exchange by the HFT traders which in effect locks out everybody else. Exchanges don't get "clogged" except in rare cases like the facebook IPO. Goldman Sachs, unlike pension funds, is perfectly capable and in fact does do HFT Pension funds do run HFT in order to hide their trades. They either build it themselves or rent an algo from pipeline/etc. Look, you clearly don't know much about the topic beyond what you read on zerohedge. I'll leave you to it.

jules 13y ago
> You claim the benefit is "infinitesimal" and I have no idea why or how you would claim this. Where do we see all the genuine long term investors being happy with HFT because they benefit so much from them? That's right, they aren't. > Exchanges don't get "clogged" except in rare cases like the facebook IPO. Then why do HFT traders do this? > Pension funds do run HFT in order to hide their trades. They either build it themselves or rent an algo from pipeline/etc. Sure, as I said, either you lose to the HFT middle man, or you lose by having to invest in your own pointless infrastructure in the cat and mouse zero sum game.