Mao Ye, Chen Yao and Jiading Gai of the University of Illinois at Urbana-Champaign found that “exogeneous technology shocks that increase the speed of trading from microseconds to nanoseconds dramatically increase” order cancellation rates and found “evidence consistent with quote stuffing.”
“As speed is of value to a trader, it is almost equally valuable to slow his competitors down,” the researchers said in their paper The Externality of High Frequency Trading.
via Securities Technology Monitor – Quote Stuffing Aims to Slow Rivals.
Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters.
Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis.
Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.
He founded PVT Capital (AFSL No. 546090) in May 2023, which offers investment strategy and advice to wholesale clients.