Algo computers produce absolutely zilch of any benefit to shareholders on the ASX - which by the way is the very reason the ASX exists.
What uninformed claptrap.
Alogs are highly beneficial in preventing price instability and volatility that otherwise would be seen in stocks where the size of orders (buying and selling) are large in relation to average daily volume.
For example, assuming an institution wanted to buy or sell 500,000 shares in a stock like MSB (which is effectively not a big order in the context of the size of average value of funds managed by investment institutions these days), how would they go about doing so if they were not permitted to use computers that were programmed to deal only in volumes over the course of the day which were such that the price outcome was VWAP?
Would they just place an order for 500,000 shares in the screen and hope like heck that nobody notices and leapfrogs over their order, with the attendant dramatic movements in the share price?
You've obviously never spent any time speaking to anyone who actually programs algos or who deals in listed securities using algo's.
Add to My Watchlist
What is My Watchlist?
