[QUOTE=garo;331130]Does someone have exclusive rights over sending orders before anyone else?[/QUOTE]

Only in the case of seller making an "offer" (read: "ask order"). But then they can immediately withdraw it.

[QUOTE=garo;331130]If not, and the only barrier is the vast amount of money and technical know-how required to become a player in HFT, then the playing field is level enough for the SEC to not take any action against HFT.[/QUOTE]

I agree with you. But it is a [I][U]vast[/U][/I] "amount of money and technical know-how required to become a player". And all of these, of course, have "Level 1 Access".

Some players go so far as to build or rent dedicated fiber-optic network connections to get a few milliseconds' advantage.

[QUOTE=garo;331130]Now if we talk about a transaction tax, say even 0.01% then you will see a LOT of HFT firms go out of business.[/QUOTE]

Completely agree.

As it is now, any "retail day trader" might as well burn their money. Or buy lottery tickets.

[QUOTE=ewmayer;331138]HFT orders-designed-to-not-be-executed violate existing black-letter laws against market manipulation.[/QUOTE]

Care to cite those laws?

(And, for the record, I used to play in this space. But long before humans were "Only Human" [Matrix reference].)

[QUOTE=ewmayer;331155]...but cites much of the key applicable case law. Note the frequent usage of the term "bona fide" w.r.to market making and market buy/sell orders.[/QUOTE]

OK... Thanks for that (sincerely).

But if the "police" and the "courts" don't enforce the "law", what use is it? (I realize this is your fundamental point.)

Ernst, ever heard of an IOC or FOK?

[QUOTE=garo;331130]Finally, 12:01??? [B]AYFKM[/B]?? If the news is out at 12:00, you can be pretty sure there are orders out at 12:00:00.020.[/QUOTE]

[b]Not[/b] from any people with inside information.

There are firms out there that have computers hooked up to news feeds that parse the information and send orders out in an automated fashion. That is NOT inside information as the news feeds are public.

#10.

More from the Beeb.
 

[URL="http://www.bbc.co.uk/news/magazine-21636723"]No comment.
[/URL]

Paul

[QUOTE=ewmayer;332438]Another quips: "Hey, take it easy with those bananas - those don't grow on trees, you know."[/QUOTE]You'd be amazed at how many people, outside banana growing areas, think that bananas [b]do[/b] grow on trees.

[QUOTE=xilman;332498]You'd be amazed at how many people, outside banana growing areas, think that bananas [B]do[/B] grow on trees.[/QUOTE]
Half of those who [B]do[/B] know that that's false, wouldn't know that they grow UP not down. (no innuendos please)

Hilarious
 

Take the ZeroHedge test:
[url]http://nihoncassandra.blogspot.com/2013/03/take-zero-hedge-test.html[/url]
Ernst, this is a must for you!

Oh and in the Niall Ferguson doesn't know what he is talking about department an excellent takedown from 2011.
[url]http://www.lrb.co.uk/v33/n21/pankaj-mishra/watch-this-man[/url]