The Dark Pools Rise
From Tyler Durden at Zero Hedge:
The decision to ‘enable’ HFT – for its ‘liquidity-provision’, which after all has done nothing but expose the dismal reality of a market structure designed to nickel-and-dime retail til the last penny drops, has had the absolute opposite unintended consequence of driving the only real liquidity provider – the retail trader putting his real money to work – out of the market. As Securities Technology reports, the NYSE Euronext reports daily volume of trading stocks down 16.9% from a year ago (and down 17.8% YTD compared to last year) and down 9.9% from June alone. Trading in stocks on its exchanges in Europe were also down 12.3%. This plunge in stock trading has knocked into the derivative markets which have seen a massive 15.8% cliff-dive worldwide from June to July.
One more nail statistic in the coffin of CNBC’s audience is a 29.7% drop in ETF transactions year-over-year and NYSE/Arca/MKT’s share of trading in NYSE-listed stocks is down 34.3% from a year ago as the dark pools rise.
Instead of being the first one to like this can I be the first one to understand this?
Sorry. Last month I posted The History of Dark Pools. I probably should have posted a link to it, but have already done on a couple of occasions. This recent post also discussed HFT in detail.
I believe it means automatic computer generated stock trades based on algorithms are taking over as broker and other e-trade volume continues to shrink.
Right, but it also means financial managers are making moves in hours while the elites are making them in milliseconds. HFT is state-sponsored embezzlement. It is as egregious an ongoing crime as unregulated derivatives and The Bernanke Put.