"THE MARKET... consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Alexander Elder

Friday, April 11, 2008

"Spike Back", the movie

Electronic trading ultimate drama.
WARNING: Graphic scenes of manipulation and charting violence.
May not be suitable for all members of the trading community.

see: Rated R
(alternate working title, "Divine Justice")
see also: the current environment

1 comment:

Charles Longfellow said...

Comments on this topic are encouraged. Phil has blogged about a new event scenario that calls into question the fairness of electronic trading. Previous NDD forum postings point to the reality of forex price manipulation by way of deliberate platform spiking. The implication is a more general problem to do with electronic trading that could affect fair dealings, or their perception, to do with stocks, options and futures.

eXTReMe Tracker

What is a Bucket Shop?

"Bucket Shop is a specifically defined term under the criminal law of many states in the United States which make it a crime to operate a bucket shop. [2] Typically the criminal law definition refers to an operation in which the customer is sold what is supposed to be a derivative interest in a security or commodity future, but there is no transaction made on any exchange. The transaction goes 'in the bucket' and is never executed. Without an actual underlying transaction, the customer is betting against the bucket shop operator, not participating in the market."
see: Wikipedia

The SEC believes that "internalization" is somehow different, and this affects ALL of your online trading, no matter what you are trading. Trades that are executed outside of the exchange, never reaching the main market, effectively hide data from technical analysis, and skew pricing.
see: Not a bucket?

"... internalization hurts retail customers and market quality"

see: EconPapers

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