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These aren't bribes to get the information quickly; there are actual costs involved that must be covered to transmit and process the info with high frequency. T
by logn 13y ago
These aren't bribes to get the information quickly; there are actual costs involved that must be covered to transmit and process the info with high frequency. The alternative would be saying they'll only publish the information slowly (SIP, or say the morning newspaper), in which case there's an imbalance of knowledge between people placing huge orders and everyone else.
Suppose we had no weather forecasts and meteorologists hoarded the information. And suppose store owners could only adjust prices each morning. Before a hurricane, meteorologists could buy up every last emergency supply within an afternoon from the stores and then sell them the next day after the hurricane at 10 times the original price. Is that fair?
- hackinthebochs 13y agoI don't think I understand the point you're making in your first paragraph. For your meteorology example, if such information didn't have life or death consequences, I might call it fair. But the contexts of the two scenarios are different. The stock market is inherently a bet on future prices, and so using information obtained by yourself through your own efforts cannot be seen as unfair--it is an expected property of the system. Using HFT techniques to profit off of frontrunning your demand is unfair. The "market" for items needed for survival isn't analogous.