Jun 05

(h/t M.G.:

“This morning, in 15 milliseconds, 28 million dollars changed hands in the stock market before data was made available to other investors. That space of time is less than the blinking of one’s eye. The report was on CNBC, I am following the markets due to what is happening in Japan. This is a new level of high frequency trading that ought to be outlawed, no wonder the individual investor has no chance…………”)

More articles & videos on high frequency trading here:

http://www.infiniteunknown.net/tag/high-frequency-trading/


Unraveling Monday’s Early Data Release to Traders (CNBC, June 5, 2013):

Monday’s market-moving ISM manufacturing data was inadvertently sent early by Thomson Reuters to a select group of high-frequency traders, many of whom immediately traded on the information before it was available to the wider market, CNBC has learned.

The ISM manufacturing data, which on Monday came in disappointingly low and sent traders scrambling to sell shares, was set to be released at precisely 10 a.m. by the Institute for Supply Management, a private entity that puts out the data each month.

But analysts at Nanex LLC, a Chicago-area analysis firm spotted a sharp downward market reaction just before 10 a.m., setting up a mystery: How did some traders appear to know the data would disappoint the market before the scheduled release time?

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