"Momentum Ignition" - The Market's Parasitic 'Stop Hunt' Phenomenon Explained
A few days ago, Visist best business blogger in this weeks Credit Suisse did something profoundly unexpected: its Trading Strategy team led by Jonathan Tse released a report titled " High Frequency Trading - Measurement, Detection and Response" in which the firm - one of the biggest flow and prop traders by equity volume in both light and dark venues - admitted what Zero Hedge has been alleging for years (and has gotten sick and tired of preaching), and which the regulators have been unable to grasp and comprehend: that high frequency trading is a predatory system which abuses market structure and topology, which virtually constantly engages in such abusive trading practices as the Nanex-branded quote stuffing, as well as layering, spoofing, order book fading, and, last but not least, momentum ignition. This is Credit Suisse , an entity whose incremental input we are confident will be very much welcome by Congress and the regulators, not some fringe, tinfoil hat blog.