Matt Levin is good, he is at Bloomberg writing Money stuff. He he is talking about dumbells at the Chicago Exchange who will soonb buy my trading pit machines and their problems are gone. I am taking orders, a million bucks per machine.
I see this stuff all the time, its like everyone is a socialist, so we can't be maximum entropy, you have to reserve empty space for my socialist government to bail me out. One group wants a ill designed bump to jam, the other wants a government designed bump to jam. The exchange wants to make sure they control the jamming. My machine just eliminates the jamming, and screw the socialists.
Speed bumps.Today's fun fight in U.S. equity market structure is over the Chicago Stock Exchange's proposal to add a 350-microsecond speed bump to its market to protect displayed orders. The idea is that you can post or modify a limit order immediately, but if you want to trade with a resting limit order, you have to wait 350 microseconds. And during that 350 microseconds, the resting limit order can change, and you'd be out of luck. When we talked about it a few months ago I called it "sort of a blind last look" for market makers on the Chicago exchange: When prices change, the market makers get 350 microseconds to change their minds about their quotes before they have to trade on them.
This is controversial, and the Wall Street Journal has an article about the controversy today. It is a high-frequency-trader-versus-high-frequency-trader fight -- basically Virtu Financial LLC likes the speed bump and Citadel Securities and Hudson River Trading LLC don't -- and it has no moral dimension, though you can add one if you want. If you like the speed bump, you can say that it protects legitimate quotes against "latency arbitrage"; if you don't, you can say that it is "unfairly discriminatory."
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