Finally we may be seeing the end of HFT (High-Frequency Trading)! Reuters is reporting, in an "unprecedented move" (I feel like I've been using that term alot recently), that FINRA has requested the trading strategies, and in some cases computer codes, from high-frequency trading firms. This could be the fatal blow that finally takes this "weapon of mass destruction"away from the crooks using it. I'll let Tyler Durden over at Zero Hedge give you the rub:
"As everyone knows, the only thing of value within the sub-penny scalping HFT universe are the odd nuances in computer code. Which is why its supreme and undisputed secrecy is sacrosanct. As soon as anyone, especially a regulator, has a whiff of understanding how any given algorithm works, it becomes the equivalent of collapsing the wave function: observing the HFT theft-scalping duality in action eliminates the Schrodinger equation associated with any simplistic algo and collapses its "wave function" to a worthless series of ones and zeros. Said otherwise, this is the end for HFT."
No comments:
Post a Comment