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Tag Archives: dark pools

  • Insider
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    Off the Cuff: Moribund Capital

    The money flood that will never enter the real economy
    by Adam Taggart

    Monday, June 23, 2014, 5:51 PM

    3

    In this week's Off the Cuff podcast, Chris and Brian Pretti discuss:

    • Moribund Capital
      • Asset prices are rising due to money that will never hit the economy
    • Absence Of Useful Market Signals
      • No reliable benchmarks for the investor to trust
    • Dead Volatility
      • Making the market more vulnerable once it returns to life
    • Zombie Economies
      • Too many sovereign nations have become the 'financial undead'
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  • Podcast

    Joe Saluzzi: HFT Parasites are Killing the Market Host

    Our exchanges are infested
    by Adam Taggart

    Monday, July 2, 2012, 4:05 PM

    5

    Joe Saluzzi, expert on algorithmic trading — also known as high-frequency trading, or HFT — returns as a guest this week to explain how the players behind this machine-driven process act as parasites that are destroying our financial markets (and, increasingly, even themselves).

    Since Joe first spoke with us last year, HFT firms have only increased in size and share of market activity. Here are some staggering statistics on how influential they have become:

    • HTFs make up between 50-70% of the volume seen across market exchanges today.
    • 2% of the traders on many exchanges (HFTs, specifically) represent 80% of the volume.
    • A single large HFT firm (referred to as a Direct Market Maker) can account for 10%+ of a market's volume on a given day
    • Large HFT firms make between $8 to $21 billion a year.
    • HFT trades occur in milliseconds (i.e., a small fraction of the time it takes your eye to blink).

    With such scale, speed, and profitability, HFTs have turned the market away from being an efficient price-setting mechanism and perverted it into a casino where the clientele of human investors gets fleeced.

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  • Blog

    Joe Saluzzi on High-Frequency Trading: The Equity Market Is Now Controlled By The Machines

    by Adam Taggart

    Saturday, February 5, 2011, 12:00 AM

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    Joe Saluzzi, co-founder of Themis Trading LLC and outspoken exchange expert, is concerned with how high-frequency trading has brought the capital markets into uncharted – and dangerous – territory.

    “Things have changed,” he cautions. With 50-70% of all trades being conducted by algorithms at micro-second time intervals, real human traders are increasingly challenged to understand how our markets actually work. “No longer do the technical patterns – that have lasted for years and years, and are written about all over – work anymore.”

    In the following interview, Joe and Chris plunge into “dark pools” and other poorly-understood elements of our now-machine-dominated financial exchanges. The current system is fraught with risks of further “flash crash”-like disruptions, and at a fundmental level, feels a lot like sanctioned theft by the deep-pocketed institutions who can outspend on technology and speed. This is an important interview for anyone involved in trading (professionally or personally), as well as investors who want to know how today’s markets truly operate.

    Click the play button below to listen to Chris’ interview with Joe Saluzzi:

    [swf file=”http://media.chrismartenson.com/audio/joe-saluzzi-2011-02-04-final.mp3″]

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    In this podcast, Joe sheds light on why: 

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