Well, even in these days of programme or flash trading, that is patently not true of all assets.
The SEC is proposing a ban on flash trading along with other issues grabbing headlines, like direct market access for high-frequency traders.
The Commission is working on regulation for short-selling, looking into dark pools and flash trading and changing some of its staff members all at the same time.
Last summer, Direct Edge was at the center of a controversy over so-called flash trading, in which users of its ECN are flashed unfilled orders for fractions of a second before those orders are routed out to rival exchanges.
The issue becomes just the latest in a long list of issues the SEC is examining regarding the current U.S. market structure, right up there with high frequency trading, dark pools, flash trading, market access, and trade tracking and reporting.
Actually, the dramatic trend to shorter holding periods began 50 years ago, long before flash-trading entered the vocabulary.
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The very low volume indicated it was also due to the activities of other short-term traders, including program-trading firms and flash-traders, in there every day doing their job of making short-term trades for quick profits.
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The flash crash was not high frequency trading, it was high velocity trading.
Flash forward 8 months and EXR is trading 36% higher and looking more like a momentum stock.
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Fusion-io shares are trading sharply lower in late trading Wednesday after the provider of flash-based enterprise storage products issued disappointing guidance for the rest of the fiscal year ending in June 2013.
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The flash-crash report provides some vindication for high-frequency trading firms, which had been widely blamed for the mayhem that day.
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Now, partly thanks to flash orders, Direct Edge is the third-largest stock trading platform by matched volume in the country, according to Raymond James.
They say a ban could cause trading volume to drop on the exchanges that permit flash as traders look for better execution in alternative, less-transparent venues.
SanDisk shares are trading higher Tuesday morning after Deutsche Bank analyst Bob Gujavarty raised his rating on the flash memory specialist to Buy from Hold.
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The venture between the two Chicago firms is meant to launch within 30 days and would provide a fully integrated trading and clearing platform for the complex derivative contracts that have been one of the flash points of the credit crisis.
High frequency trading has been scrutinized in recent years because of its links to financial scares like the Flash Crash.
Flash remained a niche part of the industry until around June 2006, when a small stock-trading platform, Direct Edge, owned by Knight Capital Group Inc.
In addition, procedures to halt trading if prices show too much volatility in a short period of time have been implemented since the flash crash occurred in 2010.
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Instead, I believe that it is a product of high frequency trading and as more traders adopt HFT we will see more firms crashing as they did and see more flash crashes as well.
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The venture between the two Chicago firms is meant to launch within 30 days and would provide a fully integrated trading and clearing platform for credit default swaps, the complex derivative contracts that have been one of the flash points of the credit crisis.
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