Reply to post: Re: Some solutions

Flash crash trader takes plea bargain, cops to 'spoofing' and wire fraud

John Smith 19 Gold badge
IT Angle

Re: Some solutions

Read "Flash Boys."

The US exchanges have cooperated in defining a slew of bizarre order types that basically allow HFT companies to probe the market without actually having to buy any shares.

They are not really orders as such

They are a probe language allowing the HFT to buy up the big orders ahead of the actual customer and then sell them on at mark up. This is how HFT's can be in the astonishing position of "trading" on stock exchanges and never making a loss.

The simplest answer. Stick a 20Km FO cable on the front of the Exchange servers and don't allow HFT or other big players to co lo at your server facility.

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