The New Secondary Market Structure: Competition, Dark Pools, Algorithmic and High-Frequency Trading

Author(s):  
Brian Scott-Quinn
Author(s):  
Chris Rose

High Frequency Traders undoubtedly have an advantage over the average trader or trading desk because they incorporate nefarious devices into their trading schemes such as Flash Trading, Dark Pools and Quote Stuffing. In addition, they usually locate their servers as close to the exchange servers as possible so their data travels the shortest possible distance. However, adding spam-control techniques to control all trades would negate these advantages and return trading to once again being an equitable, free and open market-based system.


2013 ◽  
Vol 56 (6) ◽  
pp. 715-722 ◽  
Author(s):  
Emory Zink ◽  
W. Travis Selmier

2010 ◽  
Vol 8 (8) ◽  
Author(s):  
Chris Rose

<p class="MsoNormal" style="text-align: justify; margin: 0in 0.5in 0pt; mso-pagination: none;"><span style="color: black; font-size: 10pt;"><span style="font-family: Times New Roman;">A market should be the purest form of exchange with willing buyers and sellers, with perfect information, agreeing on a price for a stock or commodity. Unfortunately, there are sophisticated computer systems sometimes located in the very building that house the stock or commodity exchange servers, and those computers can execute millions of trades per second. Those computers are even allowed to secretly view available trades before the rest of the general public and sometimes those trades are even clandestinely made, without any broadcast of the buy or sell prices to others. What is clear is that far from being a pure form of exchange, today&rsquo;s market is heavily skewed, with the average consumer being the loser.</span></span></p>


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