The mystery after magnanimity quotes evaporates the US stock meets with high frequency trade program " inbreak "

Liu Ming of reporter of exercitation of Yang Kezhan of every classics reporter

15 pin vgaThose who contain some kind of super algorithm is high frequency trade, often can ground of without striking a blowing inbreaks security marke most popular selling brooch pins t, what even if faces is the American stock market of impregnable. Last week, doubt is like come from some the home is high frequency trade the program of business, be in unexpectedly send a mystery after even more quotes 1 million times to evaporate.

Quote hind disappears suddenly

Accordi canon ef 15mm ng to top class and high frequency trade the data of monitoring business Nanex, american security market has last week amount to the quote of 4% to be carried out by a secret computer program, but trade without brushstroke unexpectedly among them finish. Weirder is, in time of American the eastpart part last week 5 in the morning 10 when 30 minutes, should trade the program disappears suddenly afte the most popular memory card digital cameras r giving out t free brooch pins o quote 10 thousand times about a hundred. Up to now, the motive of this program still unidentified.

"Secret program can is opposite centrally inside 25 millisecond nearly 500 stocks have quoted price, the method is to give out first 200 false quote, delete subsequently; Give out again next 400, delete again; Such loop is run " , nanex president Hunsader says, "This makes clear even if a person also can cause huge effect to the market, but bourse won't undertake detecting to this kind of behavior. But bourse won't undertake detecting to this kind of behavior..

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Your person of times feeling uneasiness is, the data of Nanex shows, the even more that this program produces quotes 1 million times occupied whole trade 10% of bandwidth, and appear in Na Sida to capture the market only. This is meant, the stock that trades with period of time is affected probably.

" daily economy news " reporter discovery, the imitate that offers according to Nanex after the event pursues, every other 25 millisecond, should trade the quote frequency of the program is ~400 200 times second, fast when achieve 1000 times even, held the corresponding period 80% of all quote.

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Have faceless report of the member that trade says, this is some high frequency trade the trick of the company, the purpose is to entice the proceed with that buy the home to assign a stock only, the storehouse that exposes oneself at the same time. Once buy the sheet below the home, high frequency trade will cancel quoted price quickly, kee most popular selling scooby costume p the investor that exposes cash.

High frequency trading negative effect

In fact, the ultimate goal of very much similar program is to make information embrace. Promote exchange system data commutative burden through much useless data, the market that makes other negotiant is received comes into being a large number of delay between data and real time data, the program operates one party to borrow this to gain the opportunity that cover interest.

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The data shows, high frequency trade to occupy American security market to always trade about 70% of the quantity. Market personage is anxious to say, if this kind of program is flush, quote by what computer gives out in great quantities, investor of and rather than trades via what judgement undertakes, may cause such as " lightning dies dish " wait to trade similarly accident. On May 6, 2010, path point to steep memory card digital cameras fall at most between one night more than 1000 bits, city watch instant evaporates even more 860 billion dollar. After the event, high frequency trade the culprit that order is considered as this to remove disaster.

Current, the United States has more and more profession investor to think, high frequency traded to damage investor confidence badly, must give keep within limits. The OmegaAdvisors author Cooperman that is known as investment legend expresses, "American card is handed in meeting must check the market gambles. Traditional in the past investor already was traded to replace by the machine, latter is in through high frequency algorithm trade the best selling t mobile prepaid cards every time on make small profit, final many a little makes a mickle. Final many the most popular canon ef 15mm a little makes a mickle..

Stock market of Cooperman proposal United States introduces the negotiable securities 1938 to carry valence to trade regular (Uptickrule) , in order to limit oversell share. As we have learned, american stock market died 1929 dish hind used this to trade regular, the requirement is in only newest clinch a deal before valence prep above one times the ability when valence is OK oversell, but SEC discarded 2007 this are regular.

Warning of Nanex president Hunsader says, the person that superintend should take action immediately, lest similar trade cause more serious consequence, those who affect whole security market is normal trade, and hit the confidence of investor. To this, analytic personage points out, undertake levy to quote behavior, conduce to the circumstance that reduces false quoted price, stabilize thereby trade environment.