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Ford Motor Co. Message Board

  • nazawall nazawall Jul 16, 2014 5:25 PM Flag

    Anyone see the note at the Marketwatch site about

    New research shows HFT manipulation in F shares by @MarkMelin Valuewalk posted. Anyone know more about this?

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    • The Valuewalk website has the article, dated July 16, by Mark Melin. If I understand all correclty, it shows charts of odd trade activity for Ford early on July 11, verifying a sudden and unexpected huge spike in machine quote activity. It definitely was machine-run as it was equivalent to making 80,000 quotes per second.

      Those watching considered this clear evidence of "front-running", a type of machine-cheating that hurt buyers at that second, essentially manipulating quotes to withdraw shares that had been for sale a mili-second earlier, even though not sold to any other buyer. A buyer buying "at market" would thus be tricked into paying more. A limit buyer would get fewer shares than expected from the visible ask.

      The chart indicates the July 11 cheat took place between 9:46:47:570 and 9:46:47:575, maybe :573-:574 to be more precise. The cheated buyer was a hedge fund trader who works for a big investor. He wants to stay anonymous in order to avoid retribution from others in the industry. The trader, however, asked HFT researcher Eric Hunsader to look for and report evidence of the cheat. The time chart is one result that Hunsader reported to Melin for his article.

      The cheated buyer saw the orginal ask for 20,000 shares sitting at $17.38, thought the price fair, so used his HUMAN FINGER to push a key to buy, but only got 12,133 shares. The rest of the shares were quickly withdrawn as a machine "saw" his order AS it came in and, then, before the buy could move through al the sell orders at that price point, moved the cheat shares to a higher asking price.

      JB

    • I could not find the article (didn't look too hard) but it makes sense. Even this morning I noticed the stock down .25 in pre market trading. It looked like it was being pulled down by a small order...maybe a short hoping to cover? Anyway, I went in and put in a competing ask for $18.05 just for fun....cancelled it after the market opened.

    • The 3.8
      outstanding
      billion shares
      constitute low
      hanging fruit,
      for these wholly
      avaricious actors,
      who contribute
      absolutely zero
      economic value.
      This has been
      going on for
      along time with
      Ford shares. The
      good news is that
      the fundamentals
      are beginning to
      exert greater influence
      on the stock price.
      This will eventually
      move these despicable
      predators to other targets.
      I am not a big regulatory
      advocate, however harsh
      sanctions should be enacted
      towards those that engage in
      this type of FRONT RUNNING.

    • I think we all know something has been going on. How many times has F got an upgrade only to go up a dime or less

 
F
13.84-0.08(-0.57%)Jul 22 4:00 PMEDT