>>Bullsh--.
"Automatic programs began issuing and canceling tiny orders within milliseconds to determine how much the slower traders were willing to pay."
Bovine Excrement has always accompanied the keepers of The Bull...
Bullsh--. This claim is like saying that those who read Barron's or IBD are "insider trading" because they have more knowledge of the markets than the average Joe on the street.
The firms are simply paying a very large amount of money to get the same data feeds everyone else gets, but faster, and then paying a lot of expensive software engineers and quants to devise algorithms to take advantage of the speed. That's all.
The difference, as I see it, is that even I can afford Barron's or IBD, nor do Barron's or IBD manipulate prices in real time as the NYT article accuses the software of doing. It was not my original contention that this is insider trading, but please keep in mind that Goldman has admitted to federal prosecutors that its software is capable of manipulating markets, and that it uses this software for all of its trades.
Traders working for a firm have ALWAYS held an advantage over regular Joes. If you trade stocks you can pay a fee and receive level II which shows the stacked bid/sell prices. Some brokers offer level II for free if you trade thru them. Market Makers have always had access to Level III which is deeper, and yes they pay for it.
I have traded for over 10 yrs now, first stocks and then I switched to index futures. I always knew and still do that the pro traders have an advantage over me. Doesn’t mean I can’t make money though.