Curious where my name “Hide Not Slide” comes from? There’s an interesting story behind it. The story perfectly captures why exchanges are so interesting to understand and follow.
We begin in 2008 
Show this thread
-
The order type needed to give the firm optionality in the order book. They wanted to “hide” from certain price moves rather than “slide” with the market and lose queue position:pic.twitter.com/k8ozqur66i
Show this thread
Direct Edge creates and launches* this order type - named “Hide Not Slide” - in early 2009, at the same time it begins applying to become a public stock exchange. *After launch, Direct Edge tweaks the order design for its top customers without updating its public filings.pic.twitter.com/UmbmursCOu
-
-
In the weeks after launch, market share skyrockets, peaking at 12% of total equity market volume. The dark pool goes on to win exchange status in 2010:pic.twitter.com/IXjoAXGe3X
Show this thread -
Around the same time,
@HaimBodek – a successful ex-Goldman volatility trader – begins mysteriously losing money in early 2009:pic.twitter.com/Q5xdjLxcGg
Show this thread -
Bodek tirelessly investigates why his models suddenly broke, and finally overhears the reason at a Direct Edge holiday party – Hide Not Slide orders. Instead of staying quiet, Bodek goes public with the discovery and exposes the Hide Not Slide market cheat code:pic.twitter.com/1ZXDRHOimd
Show this thread -
Some time later, Bodek’s tip results in a record $14 million fine against Direct Edge:pic.twitter.com/jIMeOoVfl3
Show this thread -
Aftermath: ① Direct Edge merges with BATS, and BATS is bought by CBOE ② Michael Lewis’s book Flash Boys sheds more light on HFT and exchanges; IEX is born. ③ Haim Bodek goes on to work with
@sanglucci and writes multiple books on dark pools and tradingShow this thread - End of conversation
New conversation -
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.