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On 15/09/11 20:42, Simon Waters wrote:
The only decent pay for mathematicians these days is working in the city on models that exploit these 'features' of the system. To most people the sensible thing would be to damp the system to make it more stable but if you make your money on a cut of transactions then the sensible thing for you is to make the system more unstable to create more transactions. And since your the one running the system you get to choose.On 15/09/11 13:14, Henry Bremridge wrote:The trick apparently is that if someone wants to buy then you are first to offer to sell first (and v/v).That suggests to me that the price mechanism is broken. Time to switch the exchange to a more obviously auction like process? I appreciate you can't remove the time element completely, but it seems to me that a smart price mechanism would eliminate some of the daftness the stock market sees in shares with low volumes of trade where the current price mechanism falls apart because it doesn't emulate an auction well in such circumstances. I suspect such a mechanism would eliminate much of the profit to be made in short term transactions that the people who runs such things currently rely on to make it so lucrative.
Tom te tom te tom -- The Mailing List for the Devon & Cornwall LUG http://mailman.dclug.org.uk/listinfo/list FAQ: http://www.dcglug.org.uk/listfaq