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But because the front-runner is cutting the line, they only place trades once the demand is in the order book. There is no "cutting the line". If the demand we
by yummyfajitas 13y ago
But because the front-runner is cutting the line, they only place trades once the demand is in the order book.
There is no "cutting the line". If the demand were already in the order book the trade would have occurred.
Please go read the tutorial before commenting further - you demonstrably do not understand how a matching engine works.
- thatthatis 13y agoI re read your article, and it appears I took information from your headline and assumed it into your examples. I think you're talking about plain vanilla market making and speculation. Nothing in there is what I would consider predatory or HFT or front running. These things exist, per my best reading of the wsj, and you said you were defending HFT but as best I can tell merely defended computerized market making and speculation.
- dllthomas 13y agoThe thing that is being called "front running" here involves multiple exchanges. There is no cutting in any single line. There is more then one line, and you can be in multiple simultaneously. In some cases, traders may go through one line and then complain that HFT traders went and got in the other line. In order to call that "cutting in line" and be well founded, you need to come up with some framework for how that "line" works - it does not fall trivially out of the actual lines in the two exchanges.