Thu, Mar 5, 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. SkyBridge opens office in Palm Beach County[more]

    Where better for a southern location than South Florida? SkyBridge Capital, which is headquartered in New York, has opened an office in Palm Beach Gardens. Palm Beach Gardens is a "Signature City" in northern Palm Beach County, with a population of around 49,000.

  2. Outlook - Philippe Jordan predicts 'alternative beta' to displace hedge funds, Stan Druckenmiller says Europe, Japan stocks will outpace U.S.[more]

    Philippe Jordan predicts 'alternative beta' to displace hedge funds From Investordaily.com.au: The disappointing performance of hedge funds in recent years is a result of "too much money chasing too little alpha", argues Capital Fund Management. Speaking to InvestorDaily, CFM partner Phi

  3. Investing - As rig count falls, hedge funds pile into long crude futures, Parus tactically shifts long/short exposure ratios, Mario Draghi outflanking Kuroda as bearish euro bets surge, Prime Capital’s 500.com bet derailed after 41% drop[more]

    As rig count falls, hedge funds pile into long crude futures From 247wallst.com: In the week ended February 27, the total number of rigs drilling for oil in the United States came in at 986, compared with 1,019 in the prior week and 1,430 a year ago. Including 281 other rigs mostly drill

  4. Outlook - 5 reasons why 2015 is looking like a breakout year for alternative investments, Hedge fund manager Dan Loeb predicts disappointment for funds seeking energy distress[more]

    5 reasons why 2015 is looking like a breakout year for alternative investments From Forbes.com: …After a strong 2014, the public markets have been off to a choppy start in 2015. This year, savvy investors may be looking for alpha elsewhere. For many institutions and high-net-worth indivi

  5. Event-driven strategies lead hedge fund gains in February while CTA rally shows signs of fatigue[more]

    Komfie Manalo, Opalesque Asia: Hedge funds ended February on a good note (+0.8%), confirming the positive momentum witnessed since the start of the year, reported Lyxor Asset Management in its Weekly Briefing. As of the end of February, the Lyxor He