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If you're saying that HFT algorithms don't publish trades from a pure manipulation purpose I call BS. There are many HFT firms that been caught with their hand
by mhomde 12y ago
If you're saying that HFT algorithms don't publish trades from a pure manipulation purpose I call BS. There are many HFT firms that been caught with their hand in the cookie jar doing just that, the problem is that they are even more that hasn't.
It's really hard to prove intent when trading is done in microseconds and the truth lies somewhere in the algorithm. Those who got caught got caught mainly because of their email trail
- gizmo686 12y agoI would think that is is easier to prove intent in HFT (with the appropriate court orders). The source code should make it clear what the intent was.
- kasey_junk 12y agoWhy? Very rarely will you see something that like: //spoofing logic goes here. It is usually expressed in a variety of algorithms in a variety of places. Further, even getting the code is very far down the path of legal proceedings and having the expertise to suss out intent is outside of the skill set of most regulators. Looking through emails/requirements materials and/or having an informant is much more in their skill set.