Thu, Jun 30, 2016
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. Blackstone buys minority stake in New York-based credit hedge fund Marathon[more]

    Benedicte Gravrand, Opalesque Geneva: Blackstone Strategic Capital Holdings Fund, a vehicle managed by Blackstone Alternative Asset Management (BAAM), has acquired a passive, minority interest in Marathon Asset Management, for an undisclosed sum. Based in New York,

  2. Investing - Soros, Druckenmiller among hedgies profiting in market plunge, Hedge funds were most bullish on bonds since 2004 before Brexit, Surprise Brexit vote unleashes scramble for dollars, High-yield hit on Brexit but no panic selling, Scientist turned hedge fund founder lured to pound, euro, Hedge fund avoids commodities, posts big gains[more]

    Soros, Druckenmiller among hedgies profiting in market plunge From HITC.com: Bullish positions in gold and volatility and well-timed short bets on China and emerging markets, among other areas, were some of the trades that benefited hedge funds on Friday as markets digested Britons' s

  3. Manager Profile - A 26-year old hedge fund manager called Brexit — here's what he thinks about the historic vote[more]

    From Businessinsider.com: Taylor Mann is not your typical fund manager. The twenty-six year old Texas A&M graduate manages Pine Capital in Larue, Texas (population 160), where he resides with his three-year old daughter. Also atypical compared with many of the largest funds out there, Mann makes

  4. People - Mariner Investment’s co-CIO Williams to leave $5.5bn firm, IOOF hires new alternatives portfolio manager[more]

    Mariner Investment’s co-CIO Williams to leave $5.5bn firm From Bloomberg.com: Basil Williams, co-chief investment officer of Mariner Investment Group, is leaving the $5.5 billion hedge-fund firm after negotiations to renew his contract failed. Williams will stay in his role until t

  5. Hedge Fund Due Diligence Exchange offers complete due diligence reports at $1500[more]

    Matthias Knab, Opalesque: HFDDX is offering complete alternative investment due diligence reports at $1500 US. Industry professionals can simply go to www.hfddx.com and indicate their interest in sponsoring one or more DD Reports for $1500 each.