How Wall Street and the stock market is rigged by high frequency trading firms
Rating: 4/5
Citadel is the largest HFT in the world at the time of writing
Citadel is taking a shit ton of order flow
Wall Street is a whole industry of bullshit
Goldman and Credit Suisse have the largest dark pools
Customers orders trade inside dark pools against banks who trade against them
Most SEC members go work for HFT firms after the SEC
HFT firms want everything kept in the dark
Since Reg NMS in 2005, more HFTs were incentivized and exploded in value
HFTs pay banks for access to customer’s orders inside their own dark pools
Payment for order flow was pioneered by Bernie Madoff
More exchanges = more HFTs = more chances of front running
HFTs fueled by Reg NMS - needs to be redone
Electronic front-running, rebate arbitrage and slow market arbitrage
Look up Reg NMS
Customers orders are monetized by the wall street banks for the wall street banks. They trade against it or sell it to HFTs for profit
Banks fail to send orders to the marketplace because they want to use their own dark pool
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