Financial Standard Comments - AFMA urges ASIC to focus on market risk https://www.financialstandard.com.au/feed/latest?story=21938301 Thu, 16 Aug 2012 14:28:55 +1000 Thu, 16 Aug 2012 14:28:55 +1000 en-AU Copyright 2026 Financial Standard 5 Comment by Lindsay Skardoon (Spectrum Asset Management) I am somewhat dumbfounded that Dark Pools are actually able to exist. If I have an algorithm that can detect how much is sitting in the market where the strength and weaknesses are on both bid and offer and then set a strategy where if I know there are significant bids or offers which the market is unaware of then surely thats front running and insider information because I am taking advantage of information which is not available and is market sensitive.

The dark pools clog liquidity and are a limit to liquidity . If you look at the listed debt markets algo trading has ruined that market. You often can be hit with very small sequential trades, In fact I recall one day where I was selling 9,000 units and the tradesheet showed a significant number of trades were 1 or 2 units a time. Someone was testing or trying to force the price. It does not encourage trading and in any number of situatiuons that I have seen often it frontruns an order and I can preovide examples where some of my trades have been frontrun. But then again the algo traders have lots of money and influence so they can do whatever they like.

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]]> Lindsay Skardoon (Spectrum Asset Management) Thu, 16 Aug 2012 14:28:55 +1000 Comment by john ong (john massage parlour.) I don`t know much what is happening except why some can buy sell trades in small amounts ,like 1 shares and mums and dads like myself are left to wonder?

No wonder the sharemarket is dead -got a feeling ,share market are not a fair game to place your money anymore!

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]]> john ong (john massage parlour.) Thu, 16 Aug 2012 15:10:48 +1000