4 ms·
This or something similar was on 60 Minutes a few months ago it was Canadian head trader at RBC Brad Katsuyama's work got the attention of Michael Lewis. When
by dghughes 12y ago
This or something similar was on 60 Minutes a few months ago it was Canadian head trader at RBC Brad Katsuyama's work got the attention of Michael Lewis.
When Katsuyama placed large orders only some were filled and the rest later at a high price. Exchanges closer to the stock market got trade data faster and could outbid people.
In the end Katsuyama started his own exchange IEX and purposely delays their trades using loops of thousands of feet of fibre optic cable (shown on 60 Minutes) to hide from the faster traders.
A lot of the big traders even Warren Buffet included dismiss it as sour grapes.
http://www.cbc.ca/news/business/canadian-brad-katsuyama-in-spotlight-over-rigged-markets-allegation-1.2594639 http://www.cbc.ca/news/business/canadian-brad-katsuyama-in-s...
- ycombobreaker 12y ago> This or something similar was on 60 Minutes a few months ago In that it may involve HFT, it is similar. But otherwise, no. RBC's problem was in failing to handle latency arbitrage when attempting to execute against all 13-14 exchanges in parallel. Which was solved by Thor, not by IEX. And IEX is a dark pool, not an exchange (quotes are not protected, nor even visible!) The news here is that SEC is potentially underhandedly running a news service business for earnings traders. I don't think it's much news, but it is quite different from the "Flash Boys" discussion.