Nanex Research

Nanex ~ 04-Sep-2013 ~ Painting with HFT

Some High Frequency Trading (HFT) Algos are designed to produce noise in the form of rapidly placing and canceling orders at random prices. Sometimes the prices are not so random, leading to "HFT Art". Quotes in the symbol IX on September 4, 2013 produced the charts below. This is certainly not "price discovery". The only value it has that we can see, is aesthetic value.

See also TVIX from the previous day.

1. Charts showing bids and asks color coded by reporting exchange at different time resolutions.

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