Do we have high frequency traders in SGX?

/// Eric Hunsader, founder of Nanex, has been at the vanguard of warning about the dangers and the rampant fraud that the rise of high-frequency trading (HFT) algorithims have let loose in today's financial markets. .....

Of the situation that led to his award, he says:

"The folks at the NYSE were selling their direct feed for north of $30,000 a month versus the SIP which is under a thousand dollars a month. Their customers are not buying it because it has that much more rich data. The thing that makes it worth $29,000 more is that it is faster, but that is illegal. Up until this point they deny that that is the case. And somehow it works. So the exchanges make all their money from their highest paying customers which are the high frequency traders. And the high frequency traders pay the exchanges exorbitant amounts of money to have a slight advantage.

That's how the whole system works. It is absolutely, positively rigged. There is no question about it. It is rigged on many different levels in many different ways -- for example, no retail order ever gets to see the light of day of the stock exchange. That's one of the many eye openers. People who aren’t pros in the market don’t realize that it's all a rigged game. "

Hunsader also had opportunity at one point to access the audit trail data from the CME futures exchange, data that the central authorities almost never allow outside eyes to see. What he found was clear evidence that a very small number of very large players push prices and volume around at will to vacuum up profits at the expense of everyone else:



This is a very important piece of information and deserves to be an article on its own so that more people can read about it.

Why would HFT traders want to pay another $29,000 pm just to be faster? The return must be much more than the $29k pm.  But this is not the only advantage, by being faster. They are not telling the whole truth and the fraud and cheating involved. Why did they said it is rigged? Who are the victims of the rig?

Who allowed this fraud to be practiced in the exchanges?

What we have is a bunch of crooks that knew what is happening but chose not to know. And we have a bunch of people kpkb about everything but the real issue, did not know what is going on. And the end result, the traders taken to the laundry and the exchanges turning into a casino that would run to a standstill in a matter of time.

This is irresponsibility at the highest level.


Old Man of the Ocean said...

Do we have High Frequency Traders in SGX?

Knowing for a fact, how GREEDY the Ownself-Check-Ownself, Leegalising Through a Subservient Parliament of a One-Party Rule (Thinly-Veiled Communist Party in essence and practice), and Shamelessly Paying Oneself Multi-Millions Chief Honcho, WHO also creates Instant Multi-Millionaires Minions (who needs the Filthy-Rich Status to uphold Integrity and Dignity) to surround him and be loyal to Him like Obedient-Trained Mongrels, as a means for trapping and squeezing them by the necks and balls, WAS, IS AND WILL BE, it is a forgone answer to your direct question. My 16-year-old grand-daughter told me, when I put your question to her:

"Grandpa, we have people who want to get rich quick, right at the very top of our government, isn't it? If so, then where do they park their $millions? How do they make use of their ill-gotten wealth (legally or otherwise)? Don't you think they would want to increase their riches further? Won't they pay an extra $29,000 or even more in order to have a CRITICAL ADVANTAGE over all other players? See how they run and conducted the Generals' Elections for the last 10 years of my life?"

Anonymous said...

This is irresponsibility at the highest level.

But does this irresponsibility at the highest level make the Sinkie opposition more ready to be govt?

If not, will majority continue to vote for PAP?

Anonymous said...

have nothing to do with sgx

can sleep soundly and peacefully at night

sgx is a big casino...sgx is a 虎穴

why invest...why find troubles for yourself

be very very careful

Ⓜatilah $ingapura⚠️ said...

As I was saying, HFT is here to stay. Instead of decreasing due to loud complaints of "unfairness" from people, or meddling regulators who never know what they are doing, HFT action is increasing. Do you know about "trends"? Well, just have a look in the *direction* of the HFT trend----i.e. where is it going? Up or down?

Today's HFT "renegades" are the trend setters of tomorrow's quotidian trading practices---very few humans, almost entirely machines.

As I am a geek, I much prefer machines to do the complicated math-based stuff over humans. Machines do a far SUPERIOR job which has long surpassed even the best human efforts in many fields. The rapid development in "machine learning" and "machine intelligence" has put human activity in many field on the road to obsolescence, and it is a ONE WAY TRIP.

The finance industry is probably the best-paying employer for the planet's braintrust---the scientists, math and physics PhDs and electrical engineers. You have the planet's smartest people designing awesome stuff to make money as quickly as possible, and battle competition who are also tech-savvy.

"Creative destruction" is the order of our times. Move fast, Break Stuff was Facebook's mantra until they changed it only recently. However, the mantra still holds sway with many inhabitants of Geekdom busily creating the next "killer app" to BREAK whatever the "status quo" happens to be at the time.

Tech and culture go together, and here are some of the things which have already been "broken": Airline and phone cartels (now have cheap flights and phone calls---Whatapp, Skype and Facetime---FREE phonecalls), publishing (e-books, audiobooks), broadcast media (broken by YouTube and on-demand streaming media like NetFlix), newspapers (on line 24/7 breaking news), equity trading (now almost exclusively online), banking (now done on smartphones), retail shopping (e-commerce, now done on smartphones), paid-for media content like music and film ("broken" by online Peer-to-Peer file sharing), ...and of course LOCAL PROTECTED LABOUR...now completely "broken" by GLOBALISATION and free-trade agreements.

HFT is "breaking" established practices. It is killer technology used by the aspect of human nature which states that "humans are objective/ goal seeking entities". Not only can't it be stopped, it won't be stopped because it is an emergent phenomenon. (Complexity Theory anyone?)

...if you're not BREAKING things, you're not moving FAST enough.

Anonymous said...

methinks mati-lah is more interested in high frequency fucking.

patriot said...

Humanity shall be destroyed


the Machines they created

other than killings amongst

Mark my words.


Ⓜatilah $ingapura⚠️ said...

@ patriot

>> Humanity shall be destroyed by the Machines they created <<

I don't like most humans---especially the assholes over 40 (I happen to be 60, but my mind is like a horny teenage kid). So therefore I hope you're RIGHT! 😹

@ 11:11

You are absolutely RIGHT. Humans are great at making art and music, inventing food dishes, perfumes...all the shit that even the most "intelligent" and self-learning machines cannot do very well...at least YET. Fucking is also in that category. I'm not talking about sex-bots or cybersex. I'm talking OLD FASHIONED wet, funky-smelling, pubic-hair-in-mouth, KY-lubricated anus, flesh-on-flesh, bodily fluid-exchanging, cum and blood on bedsheets... FUCKING.

The "high frequency" part comes in because we are all mortal. I'm getting older. don't know how long can last...so better raise the standards and up the frequency. The MAIN objective in life is to have as much sex before you die. 😳

Anonymous said...

HFT will soon be $1/mth subscription & affordable to all assholes to play. Just like PCs destroyed the power of corporations with their centralised mainframes & super-computers, and like cloud-based services & storage destroying dedicated data centres.

25 years ago, you couldn't even trade commodities or forex unless you personally go to SIMEX building and rent a terminal there (unless you're a trader working in banks or financial companies all of whom paying expensive subscription to SIMEX for the data feeds & execution services). Now it's a dime a dozen and you don't even need to use S'pore exchange. You can do it anywhere in the world with a network connection and using any other country's exchanges as long as cheaper & more efficient.

Ⓜatilah $ingapura⚠️ said...

@ 138.

Exactly. In a short time it'll be download the app from the whatever-store, open an account and start your HFT-bot from your smartphone.

Human remisers will be disappearing like cassette tapes and Kodak Color film. (i.e. those days are GONE)