Trading volumes, page-7

True kickit, and it represents the number of trades, not the volume.

It's called 'Front running' mate, and it is supposed to be illegal. Here's how i see these things happening;

1. Bot sees potential for arbitrage (normally when chi-X is sitting a pip higher than the ASX)
2. Bot starts pinging the dark liquidity (centrepoint) on the ASX to see if there is any volume available for sale.
3. If there is, that volume is executed, and immediately sold to a buyer on chi-X.

As far as i can work out, this 'Slow Market Arbitrage' has really only been with us since the chi-x exchange opened. I've read that in excess of 80% of total executed trades on chi-x are by HFTs (and that less than 1% of orders HFT orders are executed). What annoys me is that it is blatant queue jumping. If you were at the head of the buys @ 10.5 for instance, you missed out because some HFT has decided to scoop that 0.25c.

I guess this sort of activity has bought the bid/offer spreads together, as well as adding liquidity. However, the investor at the head of the 10.5's was jumped, ended with 'no execution' and was therefore denied the opportunity for 'best execution'.

We're stuck with it I guess. All these shenanigans pretty well fund the ASX & chi-x these days.

Ho hum.