HFT Expert Joe Saluzzi explains how our unfair markets exploit investors like you. Institutional trader and market structure expert Joe Saluzzi explains how the plumbing of today’s financial markets works, exposing the unseen parties that profit off of the unsuspecting majority of investors. Dark pools, high frequency trading algorithms, pay for performance — there’s an arms race underway in which both the regulators and general public are hopelessly outgunned.
There’s an invisible war being waged in the financial markets every day.
Tremendously deep-pocketed and politically-connected players use Big Data, dark exchanges and microsecond trading advantages to exploit daily trading activity.
Their actions make investing risker and more costly for everyone else — but not only can’t we see it, it’s often cloaked deceptively as innovation “good for the consumer”, like the practice of Payment For Order flow, which makes possible the commission-free trading that firms like RobinHood are using to draw in millions of first time investors.
Today, we’re going to talk about the plumbing of that system. How it runs and how, in many ways, it operates in ways that most of us don’t see or understand. And how, in many cases, this obscurity and what goes within it further slants the odds against regular investors like you & me.
We’re fortunate to be joined today by Joe Saluzzi, partner, co-founder and co-head of equity trading of Themis Trading LLC, a leading independent agency brokerage firm that trades equities for institutional money managers and hedge funds.
He is also the co-author of Broken Markets — How High Frequency Trading and Predatory Practices on Wall Street are Destroying Investor Confidence.
The interview then continues in Part 2, where Joe gets into the specifics of dark pools, high frequency trading, what was responsible for the recent flash crash in gold — and why the likelihood of seeing more such flash crashes in the markets going forward is high.
Joe also gives a strong prediction on whether or not the SEC will approve a Bitcoin ETF within the next year.
WATCH PART 2 (https://youtu.be/6XkPWfhlMsM) & then SCHEDULE YOUR FREE PORTFOLIO REVIEW at https://www.wealthion.com/