Wednesday, March 4, 2015

HFT Exchanges Continue to Breakdown <<>> VERY informative letter from BIX WEIR

The exchanges continue to have "problems" as the markets get harder and harder to control.
The latest victim of trading mayhem is the BATS Exchange which is the third largest exchange in the US.

And the Market Breaks...
http://www.zerohedge.com/news/2015-03-04/and-market-breaks

But the BATS exchange is no ordinary exchange. It's filled with the High Frequency Traders that loot the system on a daily basis. I have written extensively about this in the past and especially as it relates to the Mother of All HFT firms...Virtu Financial (previously known as EWT, LLC)

Who's the Little Man Behind the Curtain
http://www.roadtoroota.com/public/133.cfm

January 2008...

"Wait...who in the world is EWT, LLC? I'd never heard of them. They aren't a bank or a large publicly traded financial institution like all the other "Authorized Participants". Turns out they are a very private hedge fund that has uses "state-of-the-art technology and algorithmic models to make electronic markets". Why is a "state-of-the-art technology and algorithmic models" company an "Authorized Participant" in two of the most non-technology focused securities ever publicly traded…the storage of Physical Gold and Silver."


END

I proceeded to dig into this company and found a massive amount of dirt...even before Michael Lewis exposed this company and the BATS system in his best selling book: "Flash Boys".

You'll never guess what has happened since all this was exposed? How about replacing the CEO of the BATS Exchange with an Executive from Virtu Financial just last week?!!

BATS Global Markets Names Chris Concannon as CEO
http://www.wsj.com/articles/bats-global-markets-names-chris-concannon-as-ceo-1424796858

Wall Street Journal
February 24, 2015

BATS Global Markets Inc., one of the country’s three big stock-exchange operators, confirmed naming Chris Concannon as its new chief executive on Tuesday, potentially laying the groundwork for restarting an initial public offering.
Joseph Ratterman, the company’s long-time CEO, will become chairman. The appointments are effective March 31.
The Wall Street Journal reported earlier this month that Mr. Concannon, a former executive at the high-speed trading firm Virtu Financial LLC who joined BATS as president last December, was expected to be appointed as CEO.

END

What a first week this guys is having...as soon as he takes the helm the exchange BREAKS!

It's getting hot out there so stay cool.

May the Road you choose be the Right Road.

Bix Weir
www.RoadtoRoota.com

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