4/03/2014

Why no lunch break will not be lifted

With the news on FBI investigating HFT in all the major papers, more reports and comments are coming out on the unfair advantages HFT is giving to the computer traders. In a Bloomberg report, a columnist by the name of Lewis said,’ U.S. stock market is rigged by high-frequency traders who make tens of billions of dollars jumping in front of investors. Everyone who owns equities is victimized by the practices.’ Now would this ring a bell and wake people up a bit? Why is this not illegal, not a crime?
 

Aaron Smith of Pecora Capital added,’ We don’t want to be in the high-frequency space because then you’re in a technological foot race against the next guy, When they have a bigger, faster, stronger computer, you’re out of business. We’re not interested.’ This is how effective or destructive HFT is. And it is legal at the moment. The exchanges made it legal knowing that it is unfair trading. Can you believe it? When the big funds will also be driven out of business trading against HFT, what chance do the small traders have?
 

Now why would I say ‘no lunch break’ will not be lifted? In the same Bloomberg report a Javier Paz said this, ‘FX has ongoing liquidity throughout the day, no interruption in trading and fewer gaps in prices, which all allow for algorithmic trading to flourish.’ 

Now you know the real reason why remisiers are not going to have their lunch break back. It was never about increasing trading time to increase business and commission. It is all about computer trading, and no lunch break means no interruption and means fewer gaps in prices and means good for HFT and computer trading.
 

Now, are you wiser or still blur like sotong and be let around by people pulling your ears? The truth is out. Who is the deceiver?

14 comments:

Anonymous said...

Red Bean....
You have been vindicated or rather proven beyond a doubt.

Cheers to you.

Anonymous said...

A REAL first world government in a real first world country in action:

"Germany bans managers from calling or emailing staff after work hours"
http://ibnlive.in.com/news/germany-bans-managers-from-calling-or-emailing-staff-after-work-hours/461070-79.html

Anonymous said...

No Lunch Breaks.
This practice should be brought to the attention of;

1. United Nations Human Rights Commission
2. American Civil Liberties Union
3. European Commission on Human Rights

Complain here no use.
Must complain to the whole world.

Anonymous said...

Really feel very sorry to the
many remisiers out there.

It must be DIFFICULT with falling
commissions and with NO lunch
break.

Sad.......

Anonymous said...

Seems like a game of poker where they know what you are holding in your hand.2008 all over again?

Anonymous said...

No need to feel sad for them. They deserve it for their stupidity.

Anonymous said...

Red Bean , for a long time you have been the only voice, the only far sighted visionary in Singapore condemning the evils,the unfair unethical and most immoral methods of those in high positions using first Dark Pools and algorithm trading and then High Speed computers to trade to the great disadvantage of the general public. However, those officials sitting at the top of the SGX,the MAS and the Authorities have always turned a deaf ear to what you have been protesting vehemently because they feel whatever comes from America must be good. And on one or two occasions I had joined you in condemning these unfair ways of trading. It now only takes for those conscience pricks experts in US to come out openly to condemn such unfair and unethical ways of trading using High Speed Computers. Red Bean you have now been justly vindicated in your honest views. Lets see if if the authorities in Singapore and some other countries will open their eyes to see the evil in High Speed Computer Trading and put a stop to it immediately.

Southernglory1
Thursday, 3rd 20124

Matilah_Singapura said...

Yes indeed. HFT is going to shake up the practices in the financial industry. This is only the beginning.

Complex algorithms have had to wait for the hardware to catch up. Now the hardware is fast and cheap, and getting faster and cheaper. The era of Big Data is here. One thing computers do really well is crunch data. Data sets now are huge.

Think Google -- how they've mapped the planet, own the most popular search engine, email services, video service YouTube etc etc. Google has HUGE server farms which crunch data. Storage is cheap, hardware is cheap and there are many geeks writing code to make "killer apps", the work in artificial intelligence and synthetic biology is proceeding by leaps and bounds.

We are fast approaching Ray Kurtzweil's "Singularity". In a very short time many more human work processes will be done by automation.

Complain about no lunch break? Please lah, man up. In a short time you won;t have a job lah.

The Geeks Shall Rule The Earth

Anonymous said...

Sure, they won't have a job. Neither would there be a stock market.

Matilah_Singapura said...

@1142:

Oh, there'll be a stock market, no doubt about that. Anything that makes money, is likely to be around -- even if it is odious. For e.g. religion makes money, therefore it will be around. Casinos make money...etc etc

Jobs, OTOH, cost money. If what you do can be done faster and cheaper by machine, you can kiss your job goodbye.

Very soon, if you don't have a geek skill sets, you will be irrelevant in the job market.

I fucking love that!

Matilah_Singapura said...

P.S. The top in finance no longer sport degrees in econs or business or anything from B-school. They are maths and physics PhD's -- many with multiple PhD's.

These "quants" are in. And they are bringing their top IQs and all the creative and strategic fruit they can conjure up to bear down on the "old timers".

Change is afoot. If you think its going back to "the Olde Dayes", best of luck to you :-)

The quants are here to not just stay, but they're going to rule. They can create derivatives no one else but a quant can understand. And they can trade these little buggers very soon at the speed of light -- when the new light-based computers take over. (Presently computers run on electrons, which have mass and thus are slower than photons which make up light)

Anonymous said...

If you beat them, join them. Computers are here to stay. Learn to program algos. There are many platforms available for algo testing.

Another way is to just snoop around manually. When I was a kid, Hong Kong St was used for loading and unloading of vegetables after midnight. The cages used then were made from bamboo sticks and had big holes. When the cages were unloaded, chillis, limes, sometimes even bitter gourds and cucumbers will fall out.

As kids we were scampering around and picking them up for reselling in the roadside market the next morning.

When algos shift their holdings around, there will be quite a lot to pick up profitably. You can't beat computers with speed and size but humans can trade profitably by snooping around. Good luck.

Eddie Leong said...

I do not compete with HFT. I am at the starting point...incubating new businesses, get them listed and them I exit. HFTs can take over then.

And I am not in SGX which I consider a backwater financial enclave...not exciting at all.

EUROPE, USA are the places to bet and win.

Chua Chin Leng aka redbean said...

Eddie, you are in the right field. HFT is a criminal tool. The stock market has been turned into a casino by the crooks and their criminal acts.