{"id":5258,"date":"2012-08-14T06:55:01","date_gmt":"2012-08-14T10:55:01","guid":{"rendered":"http:\/\/goldstocksforex.com\/?p=5258"},"modified":"2012-08-14T06:55:01","modified_gmt":"2012-08-14T10:55:01","slug":"bbc-news-high-frequency-trading-and-the-440m-mistake","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2012\/08\/14\/bbc-news-high-frequency-trading-and-the-440m-mistake\/","title":{"rendered":"BBC News &#8211; High-frequency trading and the $440m mistake"},"content":{"rendered":"<p><span class=\"byline\"><span class=\"byline-name\">By Tim Harford<\/span><\/span><\/p>\n<p>&#8230;&#8230;There are two rather more predatory strategies. One is called algo-sniffing. Here, a super-fast computer tries to find other computers going about their everyday business of buying or selling shares, and figures out what they&#8217;re going to do and when.<\/p>\n<p>The algo-sniffer can then get ahead of the game and exploit the slower computer. And of course you could have algo-sniffer-sniffers and algo-sniffer-sniffer-sniffers in a high-frequency arms race. No wonder speed can be so important.<\/p>\n<p>And finally, a particular sub-category of the algo-sniffer is the spoofer, which deliberately makes fake offers designed to lure other computers to show their hands, then cancels the offers. Spoofing might be illegal, or at least against the rules of stock exchanges, but it&#8217;s hard to prove that it&#8217;s going on.<\/p>\n<p>Andrew Haldane, executive director for financial stability at the Bank of England:<\/p>\n<p>&#8220;What we have out there now is this complex array of multiple mutating interacting machines, algorithms. It&#8217;s constantly developing and travelling at ever higher velocities. And it&#8217;s just difficult to know what will pop out next. And that&#8217;s not an accident waiting to happen, that&#8217;s an accident that has been happening with increasing frequency over the last few years.&#8221;<\/p>\n<p>via <a href=\"http:\/\/www.bbc.co.uk\/news\/magazine-19214294\">BBC News &#8211; High-frequency trading and the $440m mistake<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Tim Harford &#8230;&#8230;There are two rather more predatory strategies. One is called algo-sniffing. Here, a super-fast computer tries to find other computers going about their everyday business of buying or selling shares, and figures out what they&#8217;re going to do and when. The algo-sniffer can then get ahead of the game and exploit the &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/thepatientinvestor.com\/index.php\/2012\/08\/14\/bbc-news-high-frequency-trading-and-the-440m-mistake\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;BBC News &#8211; High-frequency trading and the $440m mistake&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[32,33],"tags":[161,162,163,361,1685],"class_list":["post-5258","post","type-post","status-publish","format-standard","hentry","category-trading","category-uk-europe-countries-regions","tag-algo-sniffer","tag-algo-spoofer","tag-algorithmic-trading","tag-bank-of-england","tag-high-frequency-trading"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>BBC News - High-frequency trading and the $440m mistake - the patient investor<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"BBC News - High-frequency trading and the $440m mistake - the patient investor\" \/>\n<meta property=\"og:description\" content=\"By Tim Harford &#8230;&#8230;There are two rather more predatory strategies. One is called algo-sniffing. Here, a super-fast computer tries to find other computers going about their everyday business of buying or selling shares, and figures out what they&#8217;re going to do and when. 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The Australian Securities Exchange is seen by many as one of the most transparent markets in the world, a place where everyone is informed at the same time and where investors big and small can trade\u2026","rel":"","context":"In &quot;Australia &amp; NZ&quot;","block_context":{"text":"Australia &amp; NZ","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/australia-nz-countries-regions\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":5278,"url":"https:\/\/thepatientinvestor.com\/index.php\/2012\/08\/16\/asx-revenue-from-high-frequency-trading-soars\/","url_meta":{"origin":5258,"position":1},"title":"ASX revenue from high frequency trading soars","author":"Colin Twiggs","date":"August 16, 2012","format":false,"excerpt":"A new data center, catering for high-speed trading, is becoming a major revenue-source for the ASX. My concern is that this could change the entire focus of the ASX, outweighing revenue from traditional stock market trading. Tom Steinert-Threlkeld at the Securities Technology Monitor writes: The Australian Securities Exchange Group said\u2026","rel":"","context":"In &quot;Australia &amp; NZ&quot;","block_context":{"text":"Australia &amp; NZ","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/australia-nz-countries-regions\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":7058,"url":"https:\/\/thepatientinvestor.com\/index.php\/2013\/03\/18\/asic-high-frequency-trading-taskforce-key-findings\/","url_meta":{"origin":5258,"position":2},"title":"ASIC: High-frequency trading taskforce\u2014Key findings","author":"Colin Twiggs","date":"March 18, 2013","format":false,"excerpt":"Findings of the recent ASIC investigation into dark liquidity and high-frequency trading. The high-frequency trading taskforce found that: (a) some of the commonly held negative perceptions about high-frequency trading are not supported by our analysis of Australian markets\u2014for example: (i) that high-frequency traders exhibit unacceptably high order-to-trade ratios. Increases in\u2026","rel":"","context":"In &quot;Australia &amp; NZ&quot;","block_context":{"text":"Australia &amp; NZ","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/australia-nz-countries-regions\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3560,"url":"https:\/\/thepatientinvestor.com\/index.php\/2012\/02\/22\/schapiro-questions-role-of-high-frequency-traders-wsj-com\/","url_meta":{"origin":5258,"position":3},"title":"Schapiro Questions Role of High-Frequency Traders &#8211; WSJ.com","author":"ColinTwiggs","date":"February 22, 2012","format":false,"excerpt":"Securities and Exchange Commission Chairman Mary Schapiro said Wednesday she is worried about the role of high-frequency traders in the stock market and hinted at new policies aimed at curbing frenetic market activity. A large portion of trading in the equities market has little to do with \"the fundamentals of\u2026","rel":"","context":"In &quot;Stock Markets&quot;","block_context":{"text":"Stock Markets","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/stock-markets\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":13470,"url":"https:\/\/thepatientinvestor.com\/index.php\/2016\/06\/18\/iex-group-gains-approval-for-stock-exchange-the-new-york-times\/","url_meta":{"origin":5258,"position":4},"title":"IEX Group Gains Approval for Stock Exchange | The New York Times","author":"ColinTwiggs","date":"June 18, 2016","format":false,"excerpt":"By NATHANIEL POPPER: America is getting a new stock exchange from the most prominent critics of high-frequency trading. After months of delays and a brutal lobbying battle that divided Wall Street, the IEX Group won approval on Friday from the Securities and Exchange Commission to become the nation\u2019s 13th official\u2026","rel":"","context":"In &quot;Stock Markets&quot;","block_context":{"text":"Stock Markets","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/stock-markets\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6644,"url":"https:\/\/thepatientinvestor.com\/index.php\/2013\/02\/06\/high-frequency-trading-fake-quotes-business-insider\/","url_meta":{"origin":5258,"position":5},"title":"High Frequency Trading Fake Quotes &#124; Business Insider","author":"Colin Twiggs","date":"February 6, 2013","format":false,"excerpt":"Linette Lopez writes: Nanex, a Chicago-based market research firm, sent us a chart that illustrates what can stand in a trader's way when they're trying to quote the right price...... \"It happens all the time,\" [Nanex CEO Eric] Hunsader told Business Insider. \"It crowds out legitimate prices... it's like SPAM.\u2026","rel":"","context":"In &quot;Trading&quot;","block_context":{"text":"Trading","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/trading\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/5258","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/comments?post=5258"}],"version-history":[{"count":0,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/5258\/revisions"}],"wp:attachment":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/media?parent=5258"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/categories?post=5258"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/tags?post=5258"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}