asx issued with bot speeding ticket (bst)

ASX issued with BOT Speeding Ticket (BST)

The ASX attitude to Algorithmic Trading reminds us of the Michael Jackson song, "They don't really care about us".

And we say, "Enough is enough of this garbage".

http://www.youtube.com/watch?v=8HSNeHHuQA4

The people's anger is mounting.

We asked the ASX if we could release our Algorithmic Trading BOT onto the trading network.
If they will not stop, but in fact encourage, banks and investment houses to use these virus like bots, then it only seemed fair for us to also be granted permission.

Here is the ASX reply.
"To program and release your own algorithmic trading bot you will need to be a market participant, and you will also need to get approval from the Australian Securities and Investments Commission (ASIC) and the ASX."
The application fee is $100,000 plus $7,500 per year, plus approval from the ASX and ASIC.

Ten or Twenty united investors could possibly do this, though it is almost certain the ASX and ASIC will deny permission.

Here is a format for a suggested BOT Speeding Ticket Template (BSTT), that everyone can copy and use, and send to the ASX when their stock has been affected by Algorithmic trading.

When a ticket is issued to the ASX, we suggest the forum is notified, briefly.

We also suggest that a copy of the ticket is forwarded to the ASIC, and to each member of parliament.

We are currently compiling the e-mail address list of each member of parliament so these can be saved and pasted easily in one action.

It starts with us, this change, or else it will never be done!

This ticket relates to Ironclad Mining ASX:IFE (replace references to IFE with your stock where appropriate).

Forward the ASX Bot Speeding Ticket (BST) to;
[email protected]
[email protected]

We also suggest you forward the BST to the company concerned, to let them know you have lodged the speeding ticket with the ASX and ASIC.

Use the following heading in the SUBJECT line of your e-mail to the ASX, and replace the relevant references for the appropriate stock.

ASX issued with BOT Speeding Ticket (BST).

Details.

We have noticed a change in the price of Ironclad Mining ASX:IFE on the 10th, 11th and 12th of March.
On these dates respectively, we contend that algorithmic trading bots accounted for approximately 66%, 75% and 72% of trades.

All of the trades were for exceedingly small amounts, mostly $5 to $15 dollars, and well below those fees charged for "retail" brokerage on a trade.

It appeared that bots were buying and selling amongst themselves in order to suppress the stock price, thereby preventing individual traders from conducting fair business.

It also appeared that the bots were conducting flash trading, where the software jumps the line and trades a nanosecond ahead of normal buyers and sellers to beat them to the desired price, thereby disenfranchising the retail buyer and seller.

It is also suspected the brokers concerned are using dark pools, whereby they rort the market by matching buyer and seller, and only then report the trade to the ASX, excluding retail buyers and sellers from competing fairly for the trade.

Often these trades, on the days concerned, completely filled the screens of broker sites likes Commsec and E*Trade, such that it was impossible for any individual trader to know what the "real buy/sell" price was at any time, therefore restricting the "fair" ability to trade, which some people do for a living, and some for superannuation and retirement purposes.

In light of this price change, and restriction to "fair" trading, please respond to each of the following questions;

1. Is the ASX aware of any information that could explain the ASX's inability or negligence in permitting the use of artificial algorithmic trading bots, to deliberately manipulate the stock price of IFE on the listed days?

2. Is the ASX able to identify the company who issued and used the algorithmic trading bot on IFE responsible for artificially manipulating the stock price on the listed days?

3. Did the company responsible for the algorithmic trading that artifically suppressed the stock price pay full "retail" brokerage for each trade?

4. Is it true that the ASX are charging only 51 cents for each trade conducted by algorithmic trading bots and software?

5. Was the ASX aware that the algorithmic trading bot had been introduced to the network and was targeting in a virus like fashion, the IFE stock price?

6. If the ASX was not aware of this behaviour, does it consider that to be a breach of the fair trading act (1987), specifically, section II of the act, item 11 (2) (d), "whether....any unfair tactics were used against the consumer...by the person acting on behalf of the supplier", and section 12, (1) (g) "...makes a false or misleading representation concerning the price of goods or services".

7. We contend that artificial stock price manipulation via algorithmic trading software (bots) is price coercion, and as such under the act, contravenes item 23 of the act. Does the ASX condone price coercion?

8. If the answer to question 1 is "Yes", can an announcement be made immediately? If not, why not, and when is it expected that an announcement will be made?

9. Is there any other information that the ASX may have, to explain the permitted inappropriate use of artificial algorithmic trading bots in the manipulated suppression of IFE stocks on the listed days?

10. Please confirm that the ASX is in compliance with all legal statutes in relation to fair and reasonable stock market trading.

Your response should be sent to the requester via return e-mail.

Gw

PS: We will be requesting that Hot Copper create a new and specific forum dedicated to the discussion of Algorithmic trading. Please be aware that this has not as yet been submitted to the dedicated, supportive and wonderful Hot Copper managers and staff.