Further Evidence Of Quote Stuffing Manipulation By HFT
From Zero Hedge:
“Recently we posted a required reading analysis by Nanex in which the market trading analytics firm presented irrefutable evidence of quote stuffing by HFT algorithms in tens of stocks, in which thousands of cancelled quotes would reappear each second with a definitive periodicity and regularity, around the time of the May 6 flash crash. Aside from the fact that it is illegal to indicate a quote without a trade intent, this form of quote stuffing is in fact manipulative when conducted by HFT repeaters in specific “shapes” as it actually moves the NBBO actively higher or lower, in cases pushing the bid/offer range up to 10% higher without even one trade ever having occurred, simply by masking a big block order which other algos interpret as bid interest and pull all offers progressively or step function higher (or vice versa, although we have rarely if ever seen the walking down of a stock over the past 18 months). It is as if the HFT lobby has been given the green light by the powers that be that it is safe to activate merely the bid-size quote stuffing algorithms, and not worry: the fact that the market is so one sided in its quote stuffing patterns is sufficient reason to worry of a concerted effort to push stocks higher, initiated from the very top, and effected by not only the Primary Dealer community but by the end-market “liquidity providers.”…
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GotWake 8:25 pm on July 29, 2010 660 days ago Reply
I guess the contract could have been modified, but I don’t think we will see anything change before 2012. Apple can’t keep up with demand now. They could sell 8 million iPhones on Verizon without blinking an eye.
I do agree that things are going to slow in the US over the next couple of years. If Apple could have handled the demand, this year would have been prime to go to multiple carriers.
I think AT&T is just trying get into a defensive position. If they can broaden their base, it may help reduce defectors.
Zee 9:18 pm on July 29, 2010 660 days ago Reply
Cult of Mac showed up when I did a Google search and then modified it for USA : How many iPhones are on T-Mobile’s USA network. You know for jail broken stuff … A July 21st story says they’re next. Like this fall. Maybe it’s like chess. Swapping pieces or when in doubt moving a pawn. No gambit though. Not always the best strategy but it does keep things moving. So, if AT&T takes the BB stuff, initial sales may/will reveal that numbers may be similar to projected Apple iPhone numbers should it end up on T-Mobile. So its like a win/win w/o having any destructive consequences to AT&T profits or T-Mobile’s relationships or iPhone/Apple $ losses or Rim/BB’s situation w Verizon/Droid. And maybe T-Mobile offers coverage where AT&T is weak. It’s only a theory. Plus T-Mobile is GSM and I think Apple does business with T-Mobile in Europe.