Hacker News new | past | comments | ask | show | jobs | submit login

> Now just cut out the HFT frontrunners and I can actually the price I see on the terminal.

High frequency trading is not front-running. High frequency traders 1) do not have a fiduciary duty to other traders in the market, which is a hard (and definitional) requirement for front-running; and 2) cannot see a retail investor’s order before it is executed on an exchange. They can only alter their prices in reaction to orders that have already executed.

> I didn't say abolish the exchange, I said make the data open, generally available so I can see for myself whats going on. Also smart order routers are there already, so no I don't have to write them again, every other broker already offers them.

1. This data is already available for purchase. There’s nothing intrinsically preventing you from acquiring it as an individual. I’ve personally purchased this data as an individual.

2. Even if you can “see for yourself what’s happening”, without the extremely fast market making provided by HFT you’ll be waiting significantly longer just to find a trading counterparty. Your proposal sacrifices the liquidity and price efficiency provided by HFT in exchange for freely available market data, which the vast majority of retail investors will not be able to use (let alone want to).

3. Smart order routing is possible because there is sufficient inter-exchange liquidity. In fact, it is directly facilited by HFT.

I’m not often this blunt on Hacker News, but in this case I think it’s warranted: you do not appear to have even basic familiarity with what you’re criticizing.




Consider applying for YC's Spring batch! Applications are open till Feb 11.

Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: