Talk:Brad Katsuyama

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Calboarder24

I received this message on my talk page which I'll repost here so as to allow other editors to continue the editorial efforts.

Re: Brad Katsuyama's Biographic Page - HFTs Criminal and Civil Investigations:

I am re-adding the references to the ongoing criminal and civil investigations of certain high frequency trading exchanges that were recently deleted as they were claimed to not be relevant. This is absolutely relevant information to this Brad Katsuyama's page as these investigations are the reason this person initiated IEX, which is definitely relevant to their biography, with one of the main reasons this person is known and has a Wikipedia page to begin with and therefore certainly relevant to be place on their biography here. Additionally, this information is completely objective and accurate with no bias whatsoever. These comments portray facts, totally objectively and relevant to the person's biographical work section. I must question the motivation to remove these comments due to the previously mentioned reasons as to why they are relevant and mundane to this person's Wikipedia page; the action of removing them is a clearly biased and transparent action to silence the real world events surrounding significant work of this person and are therefore completely justified to be on his Wikipedia page and are well within Wikipedia's guidelines and policies. Please do not remove these justified, objective and relevant comments again on the matter of criminal and civil investigations into high frequency trading exchanges brought on by this person's work, if you do so your agenda to silence legitimate, real world criticism of an outcome of this person's major work life will become even more transparent and known. For complete and full disclosure I have absolutely no connection or relationship with Brad Katsuyama, IEX, or any organization or person associated with the content of this post. I am simply trying to provide objective, relevant information that is uncensored and free from bias so Wikipedia users will get the best and most accurate experience with the site. Thank you.

These comments will be re-added and will remain on this person's Wikipedia page as relevant, objective, free from bias and well within Wikipedia's guidelines and policies:

Since the publishing of Flash Boys and the opening of IEX, several U.S. authorities have confirmed they are looking into certain practices used by high-frequency traders (HFTs), whose strategies can involve executing thousands of trades in milliseconds using insider knowledge that is not publicly available, giving these HFTs an unfair market advantage. The FBI, the U.S. Securities and Exchange Commission, the U.S. Justice Department and the attorney-general of New York State all have investigations underway.^[1]^[2]^[3]

Calboarder24 (talk) 05:35, 9 June 2014 (UTC)[reply]

Exchange feeds contain only publicly-available information. From what I know, high-frequency traders in equity markets use the regular exchange feeds to price their trades. Please note that this is not considered "insider knowledge" or "information that is not publicly available" because exchange feeds are accessible to all traders. In fact, all traders who use a regular Bloomberg/Reuters data feed actually are accessing the exact same feed as high-frequency traders because Bloomberg takes the same exchange feeds and filters it before trickling down that data to its clients. Similarly, Yahoo's 20 minute delayed feed accesses the exact same exchange feeds. So what Katsuyama and Michael Lewis are effectively alleging is that high-frequency traders have written faster (as compared to Bloomberg/Reuters) software to filter the same feeds, thereby extracting a speed advantage. A speed advantage obtained in this manner is not different from a speed advantage obtained from using a Bloomberg feed over the Yahoo 20 minute delayed feed. Hence, this practice is fundamentally different from "insider trading".

Also as a matter of fact, IEX themselves publicly state that they price trades using direct feeds (see William O'Brien vs Brad Katsuyama CNBC debate). So if your allegations that exchange feeds contain insider information are true, you're implicating IEX for insider trading as well.

I think the rest of your statement warrants a further look from other editors, not me, because most of my contributions have actually added to the word count of these articles rather than reduced it. However, as you've requested, I will abstain from editing this article until other editors have come to a steady-state consensus on where neutrality lies.

Sophie.grothendieck (talk) 08:32, 9 June 2014 (UTC)[reply]

Scalping done on large orders by high-frequency trading systems

Can anyone explain the prciture: how exactly item 1 on this chart is working? What magic is hidden behind words "HFT notices"? Notices how? How is it possible to notice an order? The only thing you can notice is that bid qty or ask qty decreased. This does not tell anything except that is visible to everybody - some bid qty or ask qty filled someones order. How can you derive from this infromation that you need to run to other exchanges to buy or sell same security? alexkachanov (talk) 11:24, 24 September 2015 (UTC)[reply]

HFT doesn't notice anything per se, but HFT algorithms which respond to the market will notice bid and ask quantities, as well as executed trades. This is visible to everyone, but it is not visible to everyone at the same time. For example, if one computer can "see" the change a fraction of a second before another computer can, it has the opportunity to place a reactive trade prior to anyone else doing so, or adjust its own bid/ask prices. Pricing between different exchanges might not be exactly the same, and timing between price corrections between the two exchanges for the same idiosyncratic market might be different. Insightfullysaid (talk) 04:13, 23 January 2017 (UTC)[reply]

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