High Frequency Trading

[earthfriendly]

There was a discussion on this site but I could no longer locate it. Here's a brief explanation. His work first caught my attention from this piece regarding Asian roles in Hollywood. But really, I am more curious about how the exchanges work and dig a little further.


https://nextshark.com/michael-lewis-fla ... sian-lead/

http://www.businessinsider.com/iex-ther ... ors-2017-6

[earthfriendly]

I am reading thru the Amazon reviews of the book Flash Boys. Should Goldman Sachs match the salary to avoid unwanted, negative publicity ?

The third narrative about Sergey Aleynikov and Goldman Sachs evolving position regarding HFT is very interesting because of its ambiguity. Aleynikov used mainly open source software to develop his codes to improve Goldman Sachs computer speed. When he accepts an offer to join Teza Technologies (who offered to triple his compensation from $400k to $1.2 million), he decides to copy and take his computer code on a USB drive. At such point, Goldman Sachs aggressively pursues him (gets him arrested by the FBI, tried, and jailed). At the time, Goldman Sachs considered the mentioned computer codes to be proprietary and critical to its competitive position within the HFT environment.

[Strong Eagle]

High frequency trading does nothing but cost people money so that the investment banks that can afford such schemes can skim the tiny differences in prices caused by minute delays in ticker prices that in turn are caused by the various routings the tickers take. It has nothing to do with value, and everything about taken advantage of technological discrepancies.

Its an electronic rip off... but what's surprising? The investment banks would rip off their own grandmothers.