On the way back from the Gold Coast I had the chance to catch up with a mater who I had not seen for many a year. He once had the misfortune to sit next to me on a dealing desk – he has since recovered from that experience and gone on to successfully manage about $500 million in the local market. A pretty good effort for a small firm.
Whilst we caught up on all manner of things he mentioned the difficulty that algo traders were presenting for him in the local market. It seems as if every time he tried to place a line of stock they would either piggy back the order or try and sneak in a tick or two either side. I can see the day coming in the local market where algo trading becomes the same pain in the arse that it is in the US with the same need for regulation as in the US.
