This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

ICE Volatility Is What Big Money Lives For

Stocks in this article: GS ICE

NEW YORK (TheStreet) -- What big money likes most is predictable volatility.

Traders with capital can get in front of predictable market swings, take their profits, and get out fast.

That's what high-frequency trading was about. I first wrote about it in a 1999 profile of daytraders for Salon

You see a stock moving and you get in, you get out before the move reverses. There may be just pennies of profit per share, but if you're disciplined, the thinking went, you could make some money.

HFT simply automated this process. The "scandal" unveiled by Michael Lewis in his book Flash Boys was that BATS Trading found a way to beat the other markets doing this by microseconds, by locating their computers near the Holland Tunnel.

The BATS move was the climax of the HFT game. They were dealing in advantages measured by the speed of light, and 186,000 miles per second isn't just a good idea -- it's a physical law.

So the game has moved, and as is so often the case, Goldman Sachs (GS) is out ahead of the move.

The bank is closing its "dark money pool" called Sigma X, which was dedicated to HFT. It's even selling its New York Stock Exchange market-making unit

And here's the key to that story. The seat on the floor was acquired in 2000, through the acquisition of Spears, Leeds & Kellogg, for $6.5 billion, and the sale price in 2014 is a reported $30 million.

Over at Zero Hedge, Tyler Durden sees this as evidence Goldman Sachs is expecting a market crash.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs