MarketWatch ran an article promising never to have another photo of traders on the New York Stock Exchange. There is a reason for this: there aren’t any.
Well, there are a few. But most of them are gone. They have been replaced by algorithms. What has happened to the commodity trading pits has happened to the NYSE.
The stock market ditched Wall Street years ago. The masters of the universe, like the Giants and Jets, now scrimmage across the Hudson River in New Jersey—their trading these days done almost entirely by computers piping algorithmic playbooks into a fortress of servers in Mahwah and other competing exchanges nearby.
The small squads of human traders who remain on the floor at 11 Wall St., the New York Stock Exchange’s Teddy Roosevelt–era headquarters, are (for the most part) just playing fantasy football.
The public does not know. The folks at CNBC have no incentive to tell the public.
There are people who think they can beat the algorithms. They watch CNBC.
How much actual trading is done at 11 Wall St.?
“It’s pretty darn close to zero,” said Eric Scott Hunsader, founder of market-data provider Nanex. “Even that is pushing it, because they don’t make markets, the guys in the jackets. They might say they do, but they don’t.”
The writer goes for the jugular.
The Big Board is now little more than a Big Tent for a phony media circus of photo-ops and cable-news talking heads. P.T. Barnum couldn’t draw the crowds Jack Ma did last month when he clanged the bell to kick off Alibaba’s IPO. The only things exchanged on the floor, however, were camera flashes, sound bites, and high-fives.
He is honest. “Still, by relying on trading-floor photos, we have been distorting the truth rather than reporting it. We are doing a disservice to you, our readers, and therefore we too must change with the times and find new ways to illustrate the ups and downs of the market.”
It’s a new world out there. This video gets to the point.