Flash Boys

Gandalph

If anyone is interested there is a new book out today from Michael Lewis (author of Liars Poker, The Big Short, Boomerang) entitled "Flash Boys". It's about trying to expose how high frequency traders, stock exchanges and Wall Street firms run the market. I personally can't wait to read it as he is one of my favourite authors.

Just thought I'd create a thread as it would be an interesting topic to discuss among the boards I&M folk.

I probably won't be able to pick it up for another while (unless anyone knows of any stores with it in stock?) but I'd enjoy hearing what people think of it before hand.

Static M.e.

Thanks for the heads up, just picked it up from amazon.

Gandalph

My local Waterstones have it so I'll get it tomorrow

martyoo

It's a very interesting area. I read Broken Markets a while back which is good as an intro into that area and the effect it is having on the market. I'm still not sure how much "damage" it does especially to long term investors.

I get the impression that no really understands how the equity markets in the US work anymore which is kinda concerning not to mention that fact that the rules that the SEC brought in like Reg NMS supposedly to make the markets fairer facilitated HFT.

Broken Markets

alanceltic

That's my reading material covered for my next holiday. In the same vein I can highly recommend Ben Mezrick especiallt Busting Vegas, Rigged, Bringing Down the House....all excellent reads and his piece on facebook is a brilliant read.

ToxicPaddy

Have been keeping an eye on this for a while.

Will be interesting to see what the reaction if any from those involved in this area is.

Value Hunter

Was reading a synopis/promo for the book and one of the key areas they continually mentioned was how these HFTs pay huge money to get ultra ultra speed connections physically next to trading centre, indeed they pay the trading centres (NYSE/NASDAQ) very highly for this privilage.

The end effect is that they have quicker reactions times to place trades to breaking news/announcements, thereby handicapping the rest of the market.

Personally I'd be happy if these HFT outfits were outlawed, they add nothing to the market in good times and can cause massive crashes in bad times

Gandalph

Value Hunter wrote: »

The end effect is that they have quicker reactions times to place trades to breaking news/announcements, thereby handicapping the rest of the market.

Halfway through the book and this is kinda true but not the main concern. It is more really to do with the high speed lines leading the HFT firms into other exchanges to beat the buyers to their own trades so as to push up the price before the buyers actually get their hands on whatever it is they are buying.

Gandalph

Book made a little more interesting by the fact one of the main instigators of combating these HFT firms is a Dublin born Irish man, Lewis seems to love throwing the word "f*ck" into every second sentence when he is portraying the Irish.

christeb

some great links are appearing around this online. Lewis was on CBS 60 minutes earlier in the week, and I've bookmarked this interview - from the floor of the NYSE - for later

http://www.cnbc.com/id/101544772

Gone West

Very good read, I'd recommend it to anyone on this forum.