With Haim Bodek's deep understanding of market structure, He did a great flash course on it and the issues. Take 11 minutes to give it a watch.

Look at this guy. He was known as the "algo arms dealer". He built some of the most sophisticated algorithms on the market until one day they stopped working. Discovering Wall Street firms were cheating. Here's the crazy story:

Haim Bodek origiinally worked for Hull Trading Company, Which was later acquired by Goldman Sachs in 1999. He quickly became the global head of Electronic Volatility trading at UBS in 2006, until he started his own company. Trading Machines was officially founded in 2007.

Trading Machines had a quite impressive run until 2011, When it had to be shut down due to consistently losing money in the HFT space. But Bodek couldn't shrug off the idea that he had been cheated. It was later found out that he had been.

As discovered by Haim Bodek, There was an undocumented order type that placed orders at the front of the queue. The SEC later launched an investigation and fined BATS Global Markets $14 million.

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He is so right. I developed and ran an algo for 9 years that took advantage of “exceptions” to new NSM rules. I read all of the rules and how firms using legacy type orders would trigger trade-throughs. The “exception” created the exact opposite of its intention.

This video implies that unethical practices are taking place but it's pretty light on details. Exchanges are private for-profit firms, if you think they're treating you unfairly you can use a different one or start your own.

👁👁 this is why we do develop crypto technologies. Polkadot is at the forefront of that race, walk with eyes wide open.

#bitcoin fixes this!

@threadreaderapp unroll

@GoshawkTrades @DerAFerrum Halo! here is your unroll: Talk to you soon. 🤖

@TRSTNGLRD