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View Diary: One GIF Shows Why We Should Have a Financial Transaction Tax (15 comments)

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  •  A very technical article on this trading- (1+ / 0-)
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    dave1042
    These programs are designed to trade enormous volumes of stocks, bonds and other financial instruments at superfast speeds, taking advantage of second-to-second fractional price shifts and market trends.”[4]. What this means is millions of dollars in profits for the traders with the smartest algorithms, most efficient software running on the fastest computers.
    With money as no object, one new computer chip, named iX-eCute  (see Figure 5), was designed specifically for high-frequency trading and can prepare trades in 740 nanoseconds; a proposed $300 million transatlantic cable is being built just to shave 6 milli-seconds off the current 65milli-second transaction times between New York City and London.)”[2].
    “High frequency (HF) trading firms represent approximately 2% of the nearly 20,000 trading firms operating in the U.S. markets, but since 2009 they have accounted for over 70% of the volume in U.S. equity markets and are fast approaching 50% of the volume in futures markets”[8].
    Link to article.

    -- We are just regular people informed on issues

    by mike101 on Wed Nov 14, 2012 at 12:29:06 PM PST

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