Comments on: Michael Lewis’s high-speed journalism http://blogs.reuters.com/felix-salmon/2014/04/07/michael-lewiss-high-speed-journalism/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: visit the site http://blogs.reuters.com/felix-salmon/2014/04/07/michael-lewiss-high-speed-journalism/comment-page-1/#comment-55446 Sat, 18 Oct 2014 15:37:32 +0000 https://blogs.reuters.com/felix-salmon/?p=23328#comment-55446 Heya i am for the first time here. I came across this board and I find It really useful

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By: fifa 15 coins xbox http://blogs.reuters.com/felix-salmon/2014/04/07/michael-lewiss-high-speed-journalism/comment-page-1/#comment-52531 Thu, 25 Sep 2014 20:35:12 +0000 https://blogs.reuters.com/felix-salmon/?p=23328#comment-52531 Do you mind if I quote a couple of your articles as long as I provide credit and sources back to your blog? My website is in the exact same niche as yours and my users would certainly benefit from some of the information you provide here. Please let me know if this okay with you. Cheers!

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By: competitive-mkt http://blogs.reuters.com/felix-salmon/2014/04/07/michael-lewiss-high-speed-journalism/comment-page-1/#comment-49906 Mon, 05 May 2014 19:22:03 +0000 https://blogs.reuters.com/felix-salmon/?p=23328#comment-49906 Michael Lewis… Come on… You have been a great investigative journalist over the last 25 years… But the publication of Flash Boys is no more than a “Mad Man” advertising publication for the IEX exchange which is currently on a road show with Brad and Ronan.

The book is uninteresting, uninformative, and very biased,,, something that I thought you would never be.

IEX Group, the six month-old US stock exchange led by the heroes of Michael Lewis’s controversial new book Flash Boys, is to visit Europe for the first time in June as it seeks to build relationships with trading firms in the region.

Ronan Ryan, one of the heroes of Michael Lewis’ IEX’s chief strategy officer and head of business development, will start a 10-day European roadshow from June 18, and will visit the UK, France, Holland, Germany, Norway and Sweden.

Morgan Stanley, Goldman Sachs and JP Morgan plan to help introduce the exchange to European institutions during the visit, one person said. The banks declined to comment.

Come on Michael…. Whose side of the fence are you really on? How many shares of IEX do you own? You should be as transparent as your journalism has always tried to be.

Good luck…

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By: njglea http://blogs.reuters.com/felix-salmon/2014/04/07/michael-lewiss-high-speed-journalism/comment-page-1/#comment-49710 Wed, 09 Apr 2014 14:46:31 +0000 https://blogs.reuters.com/felix-salmon/?p=23328#comment-49710 There might be literary issues with the book but given the fact that excerpts from the NYT and other articles and news stories went viral in the day after”60 Minutes” featured the book says one thing – people want to know where OUR money went and is going and now we do. Even more important, we know that there are some people who are trying to change the system. That is what most of us want.

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By: DaDaDan http://blogs.reuters.com/felix-salmon/2014/04/07/michael-lewiss-high-speed-journalism/comment-page-1/#comment-49707 Tue, 08 Apr 2014 16:24:40 +0000 https://blogs.reuters.com/felix-salmon/?p=23328#comment-49707 JuvenalRedd,

The front running occurs because the algos post small orders (usually 100 shares) to extract the information that someone is trying to do bigger trades. The 100 shares are filled at the posted quote, but the amounts over that posted simultaneously at other exchanges are withdrawn before they can be filled.

So, if you’re a retail investor trying to fill only 100 shares, you’re fine. You get your order filled at a great rate. You’re even potentially getting “paid” in some sense for the signal you’re sending by obtaining an artificially low big-ask spread that is being narrowed by algos trying to compete with each order to be at the top of the limit order book to receive the signal that someone is trading.

I think the distinction Felix is drawing (imprecisely) is that he assumes all retail orders are small enough to get fully executed at these best of prices. That may not necessarily be so. There are plenty of retail investors who may want to buy/sell a few thousand shares of a company. Or potentially much more if for example they are selling stock they received in their own company as a result of stock options or something along those lines.

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By: JuvenalRedd http://blogs.reuters.com/felix-salmon/2014/04/07/michael-lewiss-high-speed-journalism/comment-page-1/#comment-49705 Tue, 08 Apr 2014 16:15:11 +0000 https://blogs.reuters.com/felix-salmon/?p=23328#comment-49705 Okay, I see you addressed my comment in the Slate review. But your argument that things are much better (I agree) and that management fees are much higher doesn’t really excuse the behavior.

If eTrade wanted to say, we’ll fill all your orders instantly for an absurdly low fee, that’d be fine. But that’s not what they’re doing. They’re assisting the HFT algos so they can extract an undisclosed and unagreed upon fee from all the retail customers and it adds up to a nice profit. This is the type of behavior that smells bad and is why main street distrusts wall street.

Second, the fact that since fees from my broker and from my ETFs are so much higher, I should be worried about that. And I am, much more so, carefully looking at those fees. But if you’re a fund manager isn’t the place to eat your HFT losses in your fees? Again, the customer bears some of the costs of HFT.

So is HFT a bad thing for retail investors? Not really. Is it honest and completely cost free? No way. It’s a value proposition about how much I care that my orders are filled instantly, but its one that is hidden and somewhat dishonest.

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By: JuvenalRedd http://blogs.reuters.com/felix-salmon/2014/04/07/michael-lewiss-high-speed-journalism/comment-page-1/#comment-49704 Tue, 08 Apr 2014 15:57:33 +0000 https://blogs.reuters.com/felix-salmon/?p=23328#comment-49704 Felix, the main new takeaway I got from the book is that individual investors are being scalped. The amount is so small that practically it doesn’t matter to me, but the book has examples of trading in an eTrade account causing a spike on Bloomberg. eTrade even created a dark pool for its trades. So if I put in a market order at 1000 shares I do get front run.

As a long term investor, it doesn’t really matter, but I think the book does show some evidence that retail investors ARE the victims of HFT. It’s just that the .0001 per share isn’t really material to me. Again, it’s big when you add up everyone trading in their eTrade accounts. And my limit orders are giving information to the algos also.

Explain why I’m wrong.

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By: JuvenalRedd http://blogs.reuters.com/felix-salmon/2014/04/07/michael-lewiss-high-speed-journalism/comment-page-1/#comment-49703 Tue, 08 Apr 2014 15:57:32 +0000 https://blogs.reuters.com/felix-salmon/?p=23328#comment-49703 Felix, the main new takeaway I got from the book is that individual investors are being scalped. The amount is so small that practically it doesn’t matter to me, but the book has examples of trading in an eTrade account causing a spike on Bloomberg. eTrade even created a dark pool for its trades. So if I put in a market order at 1000 shares I do get front run.

As a long term investor, it doesn’t really matter, but I think the book does show some evidence that retail investors ARE the victims of HFT. It’s just that the .0001 per share isn’t really material to me. Again, it’s big when you add up everyone trading in their eTrade accounts. And my limit orders are giving information to the algos also.

Explain why I’m wrong.

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By: JuvenalRedd http://blogs.reuters.com/felix-salmon/2014/04/07/michael-lewiss-high-speed-journalism/comment-page-1/#comment-49702 Tue, 08 Apr 2014 15:57:15 +0000 https://blogs.reuters.com/felix-salmon/?p=23328#comment-49702 Felix, the main new takeaway I got from the book is that individual investors are being scalped. The amount is so small that practically it doesn’t matter to me, but the book has examples of trading in an eTrade account causing a spike on Bloomberg. eTrade even created a dark pool for its trades. So if I put in a market order at 1000 shares I do get front run.

As a long term investor, it doesn’t really matter, but I think the book does show some evidence that retail investors ARE the victims of HFT. It’s just that the .0001 per share isn’t really material to be. Again, it’s big when you add up everyone trading in their eTrade accounts. And my limit orders are giving information to the algos also.

Explain why I’m wrong.

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By: details61 http://blogs.reuters.com/felix-salmon/2014/04/07/michael-lewiss-high-speed-journalism/comment-page-1/#comment-49701 Tue, 08 Apr 2014 13:26:48 +0000 https://blogs.reuters.com/felix-salmon/?p=23328#comment-49701 …and “Weekhawken” is actually Weehawken, speaking of silly mistakes…

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