Submitted by Tyler Durden on 08/30/2012 15:46 -0400
As the charts below suggest – in somewhat stunning technicolor – that since the Knight-algo was put-to-death, NYSE volumes have coincidentally plunged by 40%! Todays run-rate with an hour to go was the lowest of the year. For those that hang on the consideration that this is due to high-priced stocks and USD-volumes are stable – err, wrong answer – futures volumes cracked in half also and that is a stable USD volume; The summer doldrums explains it – err, wrong answer – we are 20 percentage points below a normal summer-drop-off. The simple fact of the matter is, with retail suddenly the smart-money and exiting stage left unable to trade this ridiculous market, it seems that losing one market-maker algo has almost halved trading volumes; what happens if GETCO ever goes down? NYSE Volume is down 40% since the Knight Algo Slaying relative to the year-to-date prior…
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