PeterLe wrote:I bought Flashboys a couple of days ago with the intention of reading it on holiday next week.
I thought I would read the first chapter last night and read nearly 20% of the book.
The first 10% or so was a bit boring, but it has got more interesting.
This is a small extract of the text :-
"The market on his screen was no longer the market. His friend would hit a button to buy or sell a stock and the market would move away from him.."
Sounds familiar?
Being a dark pool you are given the software to trade on the pool by the pool operator.
The software was coded to signal which stock, price and volume was chosen by the operator. The operator then had to then press the execute button. Of course, before they could press the execute button the HFT firm on the dark pool could buy all the stock at that price and nudge the price up to a higher level thus gaining a profit for the HFT firm. In other words, the software was set up to allow HFT firms to act as middle men between buyers and sellers.
It is conceivable that malicious trading software for trading on Betfair could do a similar thing, signalling intention before execution. You hover the mouse over a price and then that and your chosen volume size are signalled to somewhere else.
Of course, I have
NO knowledge of this being done in sports betting or on any software that I know of, including Bet Angel. Although I can be hired for retrofitting.
