Michael Lewis has another enlightening book written with great skill such that the readers would be interested enough to keep reading about this esoteric working of the stock exchange.
– The Stock market is rigged. This 60-minutes segment has a good coverage.
– This book is about a journey of how Brad Katsuyama and others discovered how their trades are being front-run and manipulated and found the HFT gets ahead of people’s trades (front-running).
– Milli-seconds and micro-seconds make a huge difference: Microwave towers and fiber optics cable were used to speed up trades ahead of others.
– Spread Network builds and leases the network to the HFT for millions.
– Thor – started by Brad to synchronize the trades at all exchanges so the order arrive at all exchanges at the same time to avoid HFT.
– Flash crash can be attributed to HFT. More flash crashes will happen.
– Dark pool: dark allies to feed the customers’ trades to the HFT sharks.
– Irony: Goldman Sachs uses IEX.
– Heroes of the story: Brad Katsuyama from RBC and his new IEX. Other characters including Ronan Ryan. Michael Lewis makes them come alive and interesting.
– Wall street folks are greedy driven by profit and bonus. It’s biggest casino where the rich guys play the “house.”
– Angry how they use their talents to legally con people.
Role of technology and speed play either side of the roles – faster computers, please.
– IEX works by slowing down the HFT by 350us and speed up the SIP.
– Serge Aleynikov’s “stealing” the code and getting years of jail sentence.
– Why Russian programmers are fit for HFT, because they have lived in a country where working around the system is a way of life for generations.
– Programmers should go to Wall Street to maximize their pay.
– I don’t think I’ll be able to trust the Wall Street again. Too many incentives to rig the system for their own benefit.
– eBook reads like a fiction, and flows well. Makes you care about the characters and good use of metaphors and close-up description of 9/11 event.