Tue, Apr 28, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

The Flash Boys flash mob

Friday, April 11, 2014

Bailey McCann, Opalesque New York:

Michael Lewis' new book Flash Boys released last week to great fanfare, and some very real investigations into market activity. In the book, Lewis blends two of his familiar plot lines wall street and plucky idealism. Lewis, former creature of the trading floor returns anew to find the state of play altered by computers and the young traders who run them, and he doesn't like what he sees. This time, the can-do idealist who beats the establishment is a former RBC trader who starts his own exchange after discovering the evils of high frequency traders. The book is not quite Moneyball or Liar's Poker, but it has sparked some new investigations into market structure.

Whether you like or hate high frequency traders, or believe they provide liquidity, the resulting Flash Boys flash mob investigations should probably trouble you. For starters, high frequency trading isn't all that new, nor is it new to regulators. What is new is the opportunity to scapegoat new parts of the market, thanks to the cover afforded by Lewis' book.

The game is rigged, maybe not in the over simplified David v. Goliath way explained in Flash Boys but front-running exists, QE exists, artificial scarcity exists, and pretending it doesn't to keep more greater fools in the game is only a short-term strategy. Watching hedge funds unwind the most fa......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. U.S. does not want hedge funds to invest in offshore re-insurers for tax purposes[more]

    Komfie Manalo, Opalesque Asia: The U.S. Treasury Department on Thursday introduced a new rule aimed at limiting hedge funds’ ability to reduce their tax bills by investing in insurance companies in offshore tax havens. As a general rule, the U.S. tax laws does not allow hedge funds to use off

  2. Ruling: Hedge funds suing Argentina can have access to bond offering details[more]

    Komfie Manalo, Opalesque Asia: U.S. District Judge Thomas Griesa in Manhattan ruled yesterday that hedge funds are entitled to details of a recent bond offering by Buenos Aires, reports

  3. Fund managers express concern of overvaluation in both equity and bond markets[more]

    Komfie Manalo, Opalesque Asia: According to the BofA Merrill Lynch Fund Manager Survey, investors see growing overvaluations in both

  4. Update: Wall Street has strong feelings about Jon Corzine trying to make a comeback[more]

    From Businessinsider.com.au: Former New Jersey Governor Jon Corzine is thinking about starting his own hedge fund, according to the Wall Street Journal, and because of the way his last firm imploded, Wall Street has strong feelings about that. “Truth is the larger seeders would never give him money

  5. Opalesque Exclusive: Cybersecurity and hedge funds - A manager’s experience, Part Four[more]

    Benedicte Gravrand, Opalesque Geneva: Ruane, Cunniff and Goldfarb, Inc. used to have their own IT infrastructure. Todd Ruoff, Executive Vice President in charge of trading, operations and technology, was responsible for its maintenance. Then he started looking at outsourced providers a couple of

 

banner