I wonder if SAC Capital’s Steve Cohen sent Michael Lewis a thank-you note. Lately, it seems like all anyone can talk about is high-frequency tradingand the new book “Flash Boys.” But long before there was HFT, there was insider trading.
There’s a common perception (fueled by a rabid media) that insider trading is equivalent to getting Wednesday’s winning lottery numbers on Tuesday. Sometimes it is — but not often. Don’t get me wrong, if Rajat Gupta called me at 3:58 p.m. to say Warren Buffett is going to infuse Goldman Sachswith a $5 billion boost in the middle of a financial crisis, that would be like LeBron James stealing the ball and heading down court for a SportsCenter highlight.
http://www.cnbc.com/id/101586358
Related Posts
- 85A new book by author Michael Lewis describes how trading algorithms that detect and exploit tiny, fleeting profit opportunities, called high-frequency traders, have transformed the stock market. And not by ripping off middle class investors. But that doesn't mean there are no problems. Read on to understand what high-frequency trading is, and…
- 81The issues that remain un-addressed are most important, as flash crashes have significantly grown and the core legality of certain HFT practices remains unquestioned in most public debate Investment management magnet Cliff Asness has a problem with a Bloomberg View piece on High Frequency Trading (HFT) with particular focus on issues brought…
- 81When hedge funds use bots to buy and sell stocks within milliseconds, they're not improving the market. They're rigging the market. High-frequency trading (HFT) hedge funds. These funds use computer algorithms—a.k.a.: algobots—to buy and sell stocks at incredible speeds. We're talking milliseconds. The idea is to react to any market news or…
- 81Fears that high-speed traders have been rigging the U.S. stock market went mainstream last week thanks to allegations in a book by financial author Michael Lewis, but there may be a more serious threat to investors: the increasing amount of trading that happens outside of exchanges. Some former regulators and…
- 80A once esoteric corner of the stock market —- “order types” —- has taken center stage the past few years in the debate about the health of the market, the role of high-speed traders in it and how stock exchanges interact with clients. A big reason for the scrutiny: Order…