KEISER REPORT: Financial EARTHQUAKES UK government declared HIGH Frequency TRADING ‘beneficial’ E359

| October 30, 2012 | 0 Comments

In this episode, Max Keiser and Stacy Herbert discuss High Frequency Trading being declared ‘beneficial’ by a scientist working for the UK government while on the other side of the pond, a US regulator blames it for wild volatility and compares it to “Texas Hold ‘Em-Time to Fold ‘Em.” They also In the second half of the show, Max Keiser talks to tax expert, Lee Sheppard, about High Frequency Trading, a Financial Transaction Tax and siphoning gasoline from a neighbor’s gas tank and claiming to be a market maker. High-frequency trading (HFT) is the use of sophisticated technological tools and computer algorithms to trade securities on a rapid basis. HFT usually uses proprietary trading strategies that are carried out by computers. Unlike regular investing, an investment position in HFT may be held for only seconds, or fractions of a second (though sometimes it may extend to longer), with the computer trading in and out of positions thousands of tens of thousands of times a day. At the end of a day of HFT there is no open position in the market. Firms engaged in HFT rely heavily on the processing speed of their trades, and on their access to the market. Many high-frequency traders provide liquidity and price discovery to the markets through market-making and arbitrage trading; and high-frequency traders also take liquidity to manage risk or lock in profits. High-frequency traders compete on a basis of speed with other high-frequency traders, not long-term investors (who
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