Erik Townsend and Aaron Chan welcome Eric Hunsader to MacroVoices. Erik and Eric discuss:
- Regulation National Market System (NMS), securities information processors (SIPs), high-frequency trading (HFT), and latency arbitrage
- Eric's incredible story of exposing the NYSE's selling of higher-speed data feeds to high-frequency traders
- "Quote-stuffing" and how it provides an unfair advantage through compromising quote systems
- Manual traders "spoofing" as a means of tricking algorithmic systems
- The fallacy of HFT providing greater liquidity in the market
- The legal immunity of U.S. exchanges as Self-Regulatory Organizations (SRO)
- How retail investor orders are executed and taken advantage of by internalizers
- Micro-timestamp resolution as a means for transparency
- How IEX prevents latency arbitrage through "speed-bumping" by 1/1000th of a blink of an eye
- The potential of combining power and integrity in a market devoid of transparency
- Nanex's differentiated market data offering
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Eric Scott Hunsader is the founder of Nanex LLC and has over 25 years of hands-on experience developing successful real-time trading software including high performance trading applications and compression techniques. He has produced many successful commercial applications which are still in use today.