Warning: Don’t do HFT on the Oslo stock exchange!

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13 thoughts on “Warning: Don’t do HFT on the Oslo stock exchange!

  • Its a drastic misconception to interpret it as socialism on the stock exchange! The regulatory framework has few, but important guidelines which is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation. Market manipulation is “easy”, but illegal. This is more of a protection statement, than to keep people from earning money.. But I guess they will inject you this knowledge at CASS, sweetheart 🙂

    • Sweetheart? Oh well, Nora 😉

      But let’s say I’m a terrible trader, consistently loosing money on my strategy.. Would you then think it was reasonable that someone then started charging my counterparts with illegal behavior, just because I was doing a terrible job?

      I don’t think so, at least not if I was putting in my orders under my free will.

    • That is not really the case! Manipulation is illegal – if you loose on illegal trading, you are just stupid…

    • Its like robbing a bank and loosing money…

    • How is this like robbing a bank?

    • That is exactly the case: One stupid trader (the bot), and two day traders gaining on that..

    • Read financial regulations… Manipulation is illegal – robbing a bank is illegal! So the real case is – did they manipulate or was just the bot stupid? Thats the case.. It was a story with this from London last year also. So, do you call financial regulatory framework socialism? All articles concludes that this makes a better market..

    • Yes, there is obviously some regulations that made the authorities react like they did (although I do suspect some dodgy reasoning for applying them in this case.)

      But, that doesn’t change the fact that I’m able to think for my self and say that this reaction is stupid.

      This is in no way equal to robbing a bank. If you’re robbing a bank you’re taking money without permission. In this case, the bot were giving away money at its free, stupid, will. In other words, they (the day traders) were not “robbing” the bot. They were merely doing just what the stock exchange is there for; providing a market for anyone who is willing to trade.

    • You didn’t only say that the reaction was stupid. You used the word socialism. (Though I have a feeling that you use those words together :P). I dont know if they where just trading smart or manipulating the market(illiquid stocks are extremely vulnerable for manipulation).

      Financial regulations are not (supposed to be) related to politics and are basically more or less the same throughout the world. And they are trying to create the market efficient as you say, but also fair.. So you need to take both factors into consideration, and not only the first factor.

      Its a hard life to be regulated and I think its a very hard job to regulate you 😛 (Uregulerbar – hihi)

    • Regarding socialism, I asked the question if this was socialism by bailing out a bad strategy.

      The price of the stock did move as a consequence of the trades performed. But the stock price will of course always be affected by trades. So that’s just the way it will always be.

      And of course, if the stock price hadn’t moved, no one would have gained or lost anything. Also, if the price didn’t move, the bot wouldn’t have behaved like it did.

      I wouldn’t put money on regulations being able to provide an efficient stock market; only liquidity can provide that. Regulations might be able to remove some limiting factors, but I guess that’s contrary to what regulations are by definition? Fair, sure..

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