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Flash Boys (the book)

  1. Aug 22, 2015 #1

    Stephen Tashi

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    For those interested in computer technology and the stock market, I recommend the interesting book "Flash Boys" by Michael Lewis. It describes some significant anti-free market aspects of "computer trading".
     
  2. jcsd
  3. Aug 22, 2015 #2

    jedishrfu

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  4. Aug 23, 2015 #3

    Stephen Tashi

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    Last edited by a moderator: May 7, 2017
  5. Aug 23, 2015 #4

    jedishrfu

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    There was a great documentary a few years ago on PBS I think American Experience or Nova about the Black Sholes equation and the notion of zero risk by using it to balance the ups and downs of the stock market and the dangerous assumption that undermined it. Might be on youtube simewhere.
     
  6. Aug 23, 2015 #5
    Yah. I think that these hedging schemes are the financial equivalent of perpetual motion machines.
     
  7. Aug 23, 2015 #6

    jedishrfu

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    Thats what happened they assumed a stable market but a Tokyo realestate bubble burst and things started to quickly derail. The Fed had to step in and bailout things before everything crashed.
     
  8. Aug 23, 2015 #7

    Astronuc

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    I think this is it - http://www.pbs.org/wgbh/nova/stockmarket/, or http://www.pbs.org/wgbh/nova/stockmarket/formula.html

    It would be interesting to see the program - but transcript is here - http://www.pbs.org/wgbh/nova/transcripts/2704stockmarket.html

    It is a fascinating story, especially the parts about the impact of the inherent latency in communications technology that one could exploit, and the dark pools, in which one's investment company may be putting one at a disadvantage.

    Michael Lewis Reflects on His Book Flash Boys, a Year After It Shook Wall Street to Its Core (March 2015)
    http://www.vanityfair.com/news/2015/03/michael-lewis-flash-boys-one-year-later
    and
    Looks like I may have to read -
    Dark Pools: The Rise of the Machine Traders and the Rigging of the U.S. Stock Market, by Scott Patterson
    https://www.amazon.com/Dark-Pools-Machine-Traders-Rigging/dp/0307887189 (no endorsement expressed or implied)
     
    Last edited by a moderator: May 7, 2017
  9. Aug 24, 2015 #8

    Stephen Tashi

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  10. Jun 27, 2016 #9

    Astronuc

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    Where is IEX today.
    http://www.bbc.com/news/business-36544970

    With "all the criticism of IEX, earlier this month the US regulator, the Securities and Exchange Commission, approved it becoming the 13th stock exchange in the US."
     
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