Anomalies
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Anomalies
Outliers, aberrations, fat tails, trouble at the mill and maybe something good once in awhile
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Scooped by Ellie Kesselman Wells
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Nanex ~ The Cost of HFT

Nanex ~ The Cost of HFT | Anomalies | Scoop.it
The cost of #HFT - new charts showing growth of quotes vs trades since 2000 http://t.co/YYI2XNpGf1
Ellie Kesselman Wells's insight:

Now versus 1999: 100 times as many quotes, same trading volume

Chronology: Reg NMS - January 2006

Advent of high frequency trading - March 2006

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Rescooped by Ellie Kesselman Wells from Papers
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High-speed Trading: Is It Time to Apply the Brakes?

How fast is high-frequency stock trading? In the time it takes to read this sentence, tens of thousands of high-speed, computer-automated transactions can occur. Winning traders edge out rivals by intervals measured in nanoseconds. Fans of the practice say that high-frequency traders add crucial liquidity to the stock market. Critics dispute that claim and highlight, instead, lurking perils for the global financial system.


Via Complexity Digest
Ellie Kesselman Wells's insight:

Yes! It IS time for some greater introspection about this, before there are even worse problems. Right now, there is very little understanding of risks to most people, including the voting public. European regulators seem to have a more realistic view and be willing to act upon it than in the U.S.A.

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Ellie Kesselman Wells's comment, January 27, 2013 1:45 PM
Yes! ;o) It is time. Thank you!