Charles Duhigg Quotes

When we had the 'flash crash' in 2010, where the price of some stocks briefly fell to zero, high-frequency trading played a big role in that event.

High-frequency traders are firms all around the world. They're massive investments.

All of a sudden the market is all about algos and routers.

High-frequency traders are firms all around the world. They're massive investments. And there is an incredible race for speed now. People are paying hundreds of millions of dollars to shave milliseconds off.

We built a market at IEX that does not sell certain types of technology advantages to high-frequency traders, and as a result, the high-frequency traders that didn't rely on buying those advantages trade on IEX.

We can prevent unfair advantage, and we can avoid the destabilizing effect that high frequency trading can have.

We live in an age of great jitteriness in the financial markets. And there's no doubt at all, I think, that the volume of computer-traded stocks has helped contribute to that.

In a flash order transaction, buy or sell orders are shown to a collection of high-frequency traders for just 30 milliseconds before they are routed to everyone else. They are widely considered to give the few investors with access to the technology an unfair advantage, even by some of the marketplaces that offer the flash orders for a fee.

How can you allow the trading companies to locate computers closer to exchanges and flash millions of bids to give an unfair advantage?... Even professionals are losing faith in some aspects of the system.

Electronic communications networks match trades between investors directly, without using a market maker or specialist as an intermediary.

While markets are supposed to ensure transparency by showing orders to everyone simultaneously, flash orders are currently allowed because of a loophole in securities regulations that allows for immediate trades.

In the past, NASDAQ has defended flash orders.

As the financial experts all over the world use machines to unwind Gordian knots of financial arrangements so complex that only machines can make - 'derive' - and trade them, we have to wonder: Are we living in a bad sci-fi movie? Is the Matrix made of credit default swaps?

In financial services, the front end of the world operates at super-high speeds: comparative advantages are measured in fractions of nanoseconds. And yet back end processes - the amount of time you have to wait when you sell a stock before cash hits your account - can take days.

The idea that big buyside firms are going to come in and trade mano-a-mano with high-frequency trading firms shows a lack of knowledge of the business.

When the last history of high-frequency trading is written, Hunsader, like Joe Saluzzi and Sal Arnuk of Themis Trading, deserves a prominent place in it.

I like to take people you wouldn't really think people would write novels about: an aqueduct engineer, a code-breaker, a hedge-fund manager. It's in those sorts of lives that I find more fascination than in a CIA operative or a Marine or something like that.

Financial institutions like to call what they do trading. Let's be honest. It's not trading; it's betting.

You take the noise and put it in data information knowledge, and you get insight from that knowledge. How to execute the trade, the timing, sizing, long, short, and then you risk manage it.

Some traders still think that a computer could not trade as well as they can.

Over and over again, financial experts and wonkish talking heads endeavor to explain these mysterious, 'toxic' financial instruments to us lay folk. Over and over, they ignobly fail, because we all know that no one understands credit default obligations and derivatives, except perhaps Mr. Buffett and the computers who created them.

Don't try to buy at the bottom and sell at the top. It can't be done except by liars.

I have very little respect for the integrity of the trading on the exchange in most stocks. And I have particular disdain for the fact that the SEC has failed to deal with high-frequency traders who are doing nothing more than taking advantage of inside information, a buy or a sell order, because of technology advantages.

On Wall Street, every story becomes known so quickly. They are all so connected that everything disseminates there faster than anywhere.

Fancy computers are engaging in legalized front-running. The profits are clearly coming from the rest of us - our college endowments and our pensions. Why is this legal? What the hell is the government thinking? It's like letting rats into a restaurant.