Re ALGO/HFT trading I will never waiver in my view that it is a greed conspiracy by licensed elites (brokers) in the global equity markets - serving not the slightest purpose in the improvement of markets. All the bull crap about helping market makers and adding liquidity is such pure concentrated bs I would like to bottle it and sell it as a patented crop fertilizer. The fact that day after day, year after year HFT's never lose a cent must tell you something surely - that it is a "no risk" business. Really?...in the stock markets...no risk?...do you smell anything slightly out kilter there?
As most would know algorithms are part of normal life and it would be stupid to reject algorithmic trading programs for those who need them to move in or out of large positions - but with one big proviso: that HFT systems be ripped out and all participants in the market follow the same trading rules and bidding practices. The movement of big parcels by big players is the central spine of the market with thousands of hopefuls (us) climbing aboard at any one time and without the big end we would have no market - so I applaud them for adapting the science of algorithms to facilitate things.
But the ugly child brought us by the marvel of computers is HFT. Their data cables run through the back door of our ASX, as simple as that. It is a self serving elitist racket designed to pushing prices around in whatever direction the client of the day demands - using impossible to monitor and non-taxed order volume to exert control, ie manipulate pricing.
If ever there was a case for a senate inquiry. Those responsible should be required to demonstrate in camera who are beneficial owner entities of every order on both sides of every transaction on any day passing through their pipes - including short sales (or naked short sales????)
MSB Price at posting:
$2.55 Sentiment: Hold Disclosure: Held
(20min delay)