Nanex ~ 24-Oct-2012 ~ Another Options Exchange?
The Miami options exchange is coming. Do we really need another one? Emphatically NO,
when the current options exchanges have
repeatedly shown they can't get their
act together. The charts below show regular 100ms + outages at CBOE. This is what happens
when High Frequency Trading algorithms go wild and blast thousands of non-sense quotes
in one option contract (there are over 500,000 option contracts). Then algos at other
exchanges are affected and return the volley. Any regulator that actually paid attention to what is going on
would place an immediate moratorium on new exchanges.
Click through the stack of 16 charts showing quote message counts by exchange.