Guaranteed someone is paying to front run for them.
Guaranteed someone is paying to front run for them.
After a few beers he'll sometimes start bringing up "customers purchasing order flow" from them, which apparently accounts for a significant part of their revenue. He's also indicated that this is not a practice unique to their shop but is fairly commonplace among companies that have highly advantageous (next-building or same-floor/dc equivalent latency) transport to various exchanges.
I assume, but am hesitant to ask directly, that this activity cannot actually be what it sounds like, but now I don't know.
The SEC announced plans to end it, but my guess is they will be bought off so only the most powerful can participate.
Citadel and Jane Street are basically at either end off almost every trade making billions off fractions of pennies.