>in the past the big HFT's had a 20 millisecond window where they were allowed to see the market orders before anyone else
As far as I know, flash trading was an optional feature, designed to be used by those who wished to shop around their order in a somewhat private network, before sending it to the wider market.
> This was effectively legalised front running of the market
If you say flash orders were abused, I'll take your word for it, but it wasn't designed to be a way to front-run. Its purpose was actually to help.
Comments
>in the past the big HFT's had a 20 millisecond window where they were allowed to see the market orders before anyone else
As far as I know, flash trading was an optional feature, designed to be used by those who wished to shop around their order in a somewhat private network, before sending it to the wider market.
> This was effectively legalised front running of the market
If you say flash orders were abused, I'll take your word for it, but it wasn't designed to be a way to front-run. Its purpose was actually to help.
If you say flash orders were abused, I'll take your word for it, but it wasn't designed to be a way to front-run. Its purpose was actually to help.
And at least 30-40% of the time, it did help. Anyone with a flash fill rate lower than that was kicked out of the ELP program.