Nanex Research

Nanex ~ 15-May-2013 ~ You are not Fooling Anybody

Watch this short clip on RT Prime Interest, discussing CFTC inaction (should start at 19:23). Transcript below.

RT Prime Interest:

HFT is also prevalent in futures, and so in that regard, Bart Chilton, a commissioner of the CFTC, has said he wants to put a Good Housekeeping Seal of Approval on every algo. And this seems maybe a little unfeasible, what are your thoughts on how to reign in some of the damage that you see these algos posing?


OK. Bart, listen. I don't understand why it's taking you this long to find these things [manipulation], they're so obvious to us, who have been in the industry for a long time, and they are obvious to traders who work with and see market data. There is no excuse for this, these are just blatant, and it's getting even more blatant, the manipulation going on.
You know, you can talk all you want, but when Adam Clark-Joseph puts out a paper that shows the top HFT's take liquidity 59% of the time, and they are successful by using exploratory trading, which is a manipulative strategy, and when that paper comes out of the CFTC's academic program, using CFTC data, and your response is to curtail or severely curb academic's access to this data, you are not fooling anybody.


Link to full video

Want to hear more straight talk about what is really going on in the markets? Watch the documentary Ghost Exchange.

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