Comments on: Michael Lewis’s flawed new book A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 By: facebook fans Sat, 18 Oct 2014 03:18:14 +0000 I began to adhere to your blog post

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By: Glenn2000 Sat, 17 May 2014 01:37:24 +0000 THE BOOK IS GREAT. MY Best friend worked for Ken Griffin at Citadel, hasn’t read the book, but was practically quoting verbatim many of Lewis’s points. “It’s simply legal front running”. And the liquidity argument, with miniscule bid/offer spreads now, is only true if the prices are real”.

HFTs simply beat your orders into the now numerous exchanges, but activity learned elsewhere, and steal your money by front running you. Just a high tech way of the oldest investment scam known. Now Felix might say, it they only steal a little, your still better off than the old days. Hmmm…

So the big Investment Banks get an excuse to “protect there customers” by channelling their trades into “dark pools”. Then they can front run you themselves with their prop desks! And only sell access to their exchange to only a few HFT firms.

Stealing money is wrong.

By: Glenn2000 Sat, 17 May 2014 01:18:39 +0000 READ THIS BOOK A+. HFT firms steal your money. More so if it’s in a mutual fund, because “it’s really bad for big investors” from another of Felix’s bogus articles. He hasn’t even finished the book. The IEX exchange creators are Gods. Every investor should sent them $10. All of them could have made more money, without taking a big risk, by just selling out to the HFTs. But some people have integrity. On Wall St., it can get a little scarce. I’ve been there, I’m for sale. Just nothing too sleazy please. I’d only steal a little, and I wouldn’t kill anyone.

HFT is stealing. Stealing other peoples money is wrong. It is simply legal front running period.

Someone above asks how HFT systems work, he’s never read how. Me neither until I read Lewis’s book. He explains it very clearly. They put out small amounts of bids and offers for many stocks, sometimes at prices that will surely get hit, then they’ll front run you on another exchange by say pulling their bid back, and replacing it with a lower one. A millisecond ahead of the guy wanting to sell his shares, and he’ll never know for sure. There are other strategies explained. Simple to understand, once you’re told what they are. The SEC seems to be in bed with these guys. “Sleazy Exchange Commission”

Felix says in another article “it’s very bad for big investors, great for individuals”. What about big mutual funds where individuals have vast amounts of hard earned money under management.. They trade huge blocks, which are just an aggregation of individual investors.

Oh, and they could literally throw the country into a recession.b they’ve caused, “flash crashes”, which have luckily recovered before the market closes, and we’re very short. But suppose the market gapped down a few thousand points and closed tht way. Felix says Asia would follow down and billions of wealth lost. But US investor stock confidence could take a monster hit, and brokers would arrive in there offices in the morning deluged with sell orders. All because of some very difficult to pinpoint goofy interactions by HFT firms/programs, that were only there in the first place to steal money.

My best friend worked directly for Ken Griffin at Citadel (HFT has at times been their biggest moneymaker). So Ken Griffin big hedge fund makes huge sums for its investors by stealing your money. Go Ken, you sleazeball! A couple details, and my buddy could be identified, so no details. But he felt more strongly about HFT than I did right after finishing Lewis’s book. He could have written it, and it would read very similarly. “All it is legal front running to steal money”. And “they’ll talk about bid/offer spreads of a fraction of a cent, and the liquidity that provides the market, but since the prices are bogus, so is the spread.” Felix would say that they can still steal some of your money, but you’ll still be better off when the bid offer spreads were huge. HFT firms do provide programming jobs… Encouraging higher education…for Russians LOL So Wall Street Banks create their own, “Dark Pools”, to protect their customers, but really so THEY can screw the customer instead of the HFTs. They’ll let their prop traders front run the customers AND then sell access to select HFT firms. SLEAZY. “To provide Liquidity” they would say. And the customer won’t know what happened in the dark. SERIOUSLY. Oh, brokers ORDERED by their customers to use IEX (WHO THWARTED HFTs by spooling up their Fibre Optic cable, to create an artificial delay within their infrastructure.) wouldn’t do it. But since it’s a huge investment bank the customer has a “relationship” (yes, a carnal relationship, but only one side is getting screwed). They can’t really say, “you’re fired”. There bosses wouldn’t let them.

By: twoinvesting Fri, 18 Apr 2014 14:54:08 +0000 Disclosure: I have not yet read Mr. Lewis’ book.

Like many of you here, I was immediately alarmed at the allegations brought by Mr. Lewis. If you haven’t watched it yet, the discussion on CNBC between Katsuyama and O’Brien, a debate which actually stopped trading at the NYSE (, is fascinating. I definitely sided with Lewis and Katsuyama against high-frequency trading during the 20 minute discussion. (It didn’t help that O’Brien was very argumentative and did not come across as being friendly.)

However, I recently watched some videos by Tom Sosnoff of tastytrade and the founder of thinkorswim that changed my mind. Mr. Sosnoff is a strong advocate of individuals taking control of their own investing. He feels that Mr. Lewis is doing a huge disservice and may possibly be setting back the financial industry in the United States.

To see what Sosnoff feels about how high-frequency trading and the retail investor, watch the videos here: -frequency-trading-and-the-retail-invest or/

In fact, after listening to Sosnoff’s arguments, I may no longer be supporting Mr. Lewis by buying his book!

By: aloisk Tue, 08 Apr 2014 07:58:00 +0000 This article might be misinformed because Felix Salmon did not care to read the book. All he found interesting was the “latency tables” which are in the first part of the book.

But instead of informing himself more and read the book he writes another article on Slate on the rest of the book defending Virtu, the HFT Trader that had to postpone the IPO because of the book.

Not Solomon thinks the book is about Vertu (although he admits that Lewis never writes about it) and finds this unfair. And the few cents the retail investors might loose on the trades would not matter, therefore there was no victim.

This is either very sloppy journalism or outright corrupted (Reuters actually makes a lot of money from market data, so this might explain it).

The small investor is also a victim because he trades at prices that are older than the ones the hft traders (and most institional investors which most of the time invest pension fund money) see.

What Lewis critizes most ist the flawed incentives, that brokers sell their order flow to hft firms so they can profit from these slow orders instead of ensuring that their orders get executed at a fair price. That the big banks created dark pools and let the orders of big clients there for some time instead of ordering it to the exchanges with the best prices because they can keep more of the fees if it is traded in the dark pools and because the HFT Traders pay to get fast access to these pools so they can skim a few cents off every order there if the market moves in the right direction.

Felix Salmon, please read the book before you write the next article about it. This book will be so widely read that your articles make you look very stupid or corrupt if people read it after reading the book!

By: euro-yank Tue, 08 Apr 2014 06:28:11 +0000 Bring the Robin Hood Tax to the table and then the costs of split second trading will negate the benefits and reduce (maybe eliminate) the problem.

By: j8h9 Sun, 06 Apr 2014 18:59:51 +0000 Yea, Felix, OBrien just called and we need a piece defending HFT, just make up some shxt that it really benefits the markets, wanta big black eye smear of Lewis and the book, got it. Okay.