"We risk becoming the best informed society that has ever died of ignorance"
- Rubén Blades

"You can't make up anything anymore. The world itself is a satire. All you're doing is recording it"
- Art Buchwald

"It's getting exciting now, two and one-half. Think of everything we've accomplished, man. Out these windows, we will view the collapse of financial history. One step closer to economic equilibrium"
- Tyler Durden

"It is your corrupt we claim. It is your evil that will be sought by us. With every breath, we shall hunt them down."
- Boondock Saints

Saturday, April 7, 2012

The HFT Stock Price Formula

Below is the SEC-CFTC Flash Crash report which revolved around the e-mini contracts for the S&P 500.  We highlight equities and ETF's when releasing information about HFT dislocations.  So CC feels it would be educational for those readers who do not trade to review the SEC-CFTC release then read the embedded document after it regarding the new "Stock Price Formula For High Frequency Trading, Bubble And Crashes".  Sounds wicked cool and solid right?  I'll go through it and post my thoughts in the near future. 

SEC-CFTC May 6 2010 Report

Trading Rules Over Fundamentals a Stock Price Formula for High Frequency Trading, Bubbles and Crashes