To add to the plethora of bumper stickers promoting nearly every cause in the universe, "Hug a Tree", "Save the Whales", "Think Green" and my favorite "Dads Against Daughters Dating - DADD", maybe we can all add this one: "Ban the Machines".
I am of course referring to the near biblical plague on the financial markets otherwise known as the High Frequency Trading Algorithms.
There is no redeeming value whatsoever in these things - none.
Knight Capital Trading Glitches Strike Wall Street
Wall Street was hit by a messy opening on Wednesday due to technology glitches at Knight Capital Group (
KCG: 7.99, -2.34, -22.65%), causing confusion and shares of the market maker to plunge more than 20%.
The Securities and Exchange Commission is talking to the New York Stock Exchange over erroneous Knight Capital trades, sources told FOX Business's Charles Gasparino. The SEC and NYSE are examining possible algorithm mishaps and looking into a possible “fat finger” trading error, while Knight told Gasparino it is looking into the trading problems.
Read more:
http://www.foxbusiness.com/investing/2012/08/01/nyse-reviews-early-morning-trades/#ixzz22JezZAj3
Dan,
ReplyDeleteI just wanted to refer you to a post I just wrote about today's action:
http://kiddynamitesworld.com/dear-knight-thank-you-dear-themis-relax/
no reason to be upset about it. It did two things: 1) provide a great opportunity for everyone, and 2) show some serious robustness in the market.
best,
KD
Just disgusting on so many levels--I think it's especially meretricious that they call it a "fat finger" when the algorithm probably just worked too well...
ReplyDeleteThe other levels: HFT / manipulation of gold shares, esp over the past six months and the "good" manipulation of propping up the indexes last 10 min every day.
The NYSE is starting to cancel the trades.
ReplyDeleteSo much for robust markets.
The market is dropping, what else should i have todo to save my money.
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