From ZeroHedge: "We’re Moving To Tackle Systemic Risk" - India Cracks Down On HFT Scourge"
"Meanwhile, the US joke of a market continues: for every 27 orders placed on U.S. exchanges, about one is filled, data from the U.S. Securities and Exchange Commission show. In other words, approximately 96 percent of all orders sent to U.S. equity markets are canceled."
"India’s high-frequency and algorithmic transactions now account for 40 percent of total volumes, the highest proportion in the developing world and up from the low single digits five years ago, according to Danielle Tierney, senior analyst at Aite Group, a Boston-based consulting firm. SEBI, which issued broad guidelines on HFT in 2012 and 2013, said in December it’s considering new restrictions, but has so far taken no action.
It will soon, and when it does that 40% will promptly collapse to the single digits or 0, because once the quote stuffing and churning ecosystem of the algo parasites is interrupted, it disintergates.
Now if only the US regulator would pretend to do its job (even if that means permanently recusing Mary Jo White, one of Wall Street's staunchest defenders) and at least feign some interest in how India is winning a war with HFTs that the US lost long ago, we would be content. Alas, that will never happen."