985.37 987.19 990.14 993.82 spx 977.69 975.87 972.92 969.25
Yesterdays, PCratio was clearly not (:- to bulls (in a short run). How about today? see the chart below( coming)
CITIZENS FOR HONEST MARKETS MANIFESTO.
Today we will lay down few details about how we see the the really honest markets functioining. The purpose is two fold.
1) Let Trading Public Understand what the real issues are
2) Present initial requirements for HONEST MARKETS
Markets, exchanges have evolved in all kinds of ways. But basic principles have remained the same. The people closest to order flow, have always had an edge over the people removed from the order flow , by layers of brokers and means of delivery of orders. So, nothing changed, truly nothing and there is no amount of misconceptions spewed by those that think they are helping fairness issue or those that would like to present things as fair and square will help.
The truth is that in some shape and form( mostly electronic) you still have the order flow advantages that can be gained by the deep pocket market players over the rest of traders/investors.
Why is that, who/what has replaced the floor broker ( who used to control order flow, could see all orders, while people could only see bid/offer). Floor brokers have been replaced by computers and routers ( electronic network facilities). Those who are closer to the exchange floor computers ( that run BOOKs, market algorithms that manage orders) and routers ( network traffic directors, like the traffic lights that regulate which car goes next into the intersection), can accrue big advantage, as they can see the orders faster and wider than other participants in the markets. If there was one exchange, there would be this advantage for sure, but add to this that there are different exchanges(countries and state), with different rules and it will become clear that the market is the wild west to be fought for by organisations with deep pockets and global interests to get the "front view" of the order "market depth" ( market participants bid and offer maps away from highest bid and lowest offer ( only view market had for a long time before electronic markets).
Joke, sort of. Boris, I understand all of that, but why/how is that important. Well, imagine. I place an order to sell 1000000(million ) shares of IBM( hUH!) and somebody comes in with the order to buy it. Now, If I could see buyers order and take my sell order away or just grant few shares instead, what happens! HUH! What happens is that I know there is buyer there for 1000000 shares of IBM and will try to raise the price on him/her buy offering the rest of the million shares at higher prices. I have forced the market participant to play with me with
------------ OPEN CARDS ---------------
The only reason I was able to do that is that I was able to CANCEL( SEND THE FIX PROTOCOL CANCEL or CANCEL/REPLACE) order faster than the buyer could get his/her order onto the BOOK.
Yes , this is like going to casino having to know the cards of every players. Do you think I would have advantage? And there are other games played in the markets. Do not get me going. So, all of those talking in abstract, please stop and level with people. If you do not tell, I WILL
Now, Please Note, I said nothing, so far, about legality of these kind of games.
Continuation to follow
We discuss the role of routers and protocols and the scanners and parsers, which are responsible to get this "total market picture" and react fast.
What Does Antisopitalist's Attraction Point and Beethoven have in Common? Read the text inside the picture while you may like to listen to this as you read the picture