HFT from a Central Bank Perspective

[ValueTrader 10]

From Bundesbank "High frequency trading and market implications - from a central bank perspective"

 

 

http://www.nanex.net/aqck2/3556/English%20version%20of%20HFT-speech%20at%20the%20TRADETECH%20conference%204th%20July%202012-1.pdf

 

An interesting read!

[SIUYA 11]

interesting - good find.

 

I did find it interesting that their idea of price discovery was meant to be fundamentally based and that those applying technicals or other ideas might not be welcome (a general summary)

When you think most markets need speculators to take the opposite positions to people it does make you wonder..... next time you look at the charts - have a fundamental reason why as well just to be sure!

I think the person nailed it - while HFT has many forms, HFT in some predatory disruptive forms will likely be banned, moderated, regulated. Trader IDs might make them more accountable and hence might be all that is needed.

Maybe they had best look at the culprits that allow this - the exchanges.

[ValueTrader 10]

  SIUYA said:

interesting - good find.

 

I did find it interesting that their idea of price discovery was meant to be fundamentally based and that those applying technicals or other ideas might not be welcome (a general summary)

.

 

My personal view on technicals is that they (the levels) are created by opinions on fundamentals. But that's a discussion for another time!

 

When they Author lists & defines all the underhanded goings on, It really does show trading up for what it is...Swimming with sharks.

[SIUYA 11]

  ValueTrader said:

My personal view on technicals is that they (the levels) are created by opinions on fundamentals. But that's a discussion for another time!

 

yes....but then you kind of get into the Efficient markets debate - totally unrelated to HFT and speculation......personally I am happy to be wrong in my opinion of the fundamentals but right in how i trade other opinions. - another thread topic.

 

  ValueTrader said:

When they Author lists & defines all the underhanded goings on, It really does show trading up for what it is...Swimming with sharks.

 

always has been - technology has changed, the participants have changed the underlying drivers remain the same!

It has always amazed me that people in the markets often think that other participants are there as a charity - While many may end up giving that is certainly not their intention.

[ValueTrader 10]

Further to my original post, checkout this motherload of HFT infomation.

 

Nanex - Ongoing Research - Market Events and Phenomena.

 

Hope you all find it of interest, I certainly did!

[Guest Kittyraj]

Stocks haven’t done anything in several days. Although this may seem like an overall neutral event, I see it as bearish. The S&P made a new intraday high while most other major indices did not. Instead of resolving this divergence with a surge higher to bring the other indices to new highs as well, the market has instead gone flat. It’s not good to reach a critical level, diverge, then go flat. In addition, there is no volume at these levels. I can’t calculate government tinkering, but on the surface, the evidence I just listed combined with the daily MACD, and other momentum indicators, rolling over and a subtle reversal candle that has held for over a week tell me the next big move in stocks should be down.

 

regards

kitty