HFT Hijinks: Life in the Fast Lane Gets Costly
High-frequency trading is undeniably the wave of the future, but computerized strategies continue to receive the stink eye from regulators and the public.
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War of the Quants: Algo Platforms Taking Over the World
Exchanges and regulators live in shuddering fear of future flash crashes, but nobody wants to miss out on the HFT action.
Algo Roundup: Ford, Feds in the News
The world of high-frequency and quant trading often seems arcane and opaque, but it’s in the mainstream news this week.
CrackBerry Craze Losing Steam?
The Wall Street elite, the original early-adopters of the email-capable, web-enabled, PDAs that allowed workaholics to get their constant fix, are beginning to reassign their addiction to a series of new devices, leaving their old friend, the BlackBerry, in the dust.
HFT Spreading Like Wildfire
Although high frequency and low-latency trading activity (HFT) continues to be eyed askance for potentially distorting U.S. securities markets, HFT continues to spread to other areas of the globe. Part of the impetus towards other markets comes from the squeezing out of arbitrage opportunities in more well known markets, where the window of opportunity for [...]
Insight From “The Flipper”: An Interview With Paul Rotter
Back in 2004, Trader Monthly ran a feature story about a gathering of fixed-income experts at a seminar hosted by UK analytics firm GannCorner. In addition to the chatter about new strategies and optimizing portfolio returns was gossip and speculation about a mysterious Eurex trader known around Europe only as “the Flipper.” At the time, [...]
The Fast Lane: Algo News Roundup
While regulators continue to eye algorithmic trading as at least one factor in the May 6 Flash Crash, traders and programmers continue to push the limits of mathematical trading models and platforms. Here are some recent developments: Financial Times/Alphaville: HFT and ETFs are among the players in a drama of distorted valuations and mob-ruled markets. [...]
The Times They Are Exchanging
In a world of ever-proliferating and increasingly speedy trading platforms, some exchanges show less hustle than others. But that may be changing. The rise of electronic trading and electronic communication networks have made many physical trading floors obsolete, even as others redouble their efforts to stay alive. While the New York Stock Exchange and Chicago Board [...]
GETCO: Flash Crash a Wake-up Call
Principals of high frequency trading group GETCO have provided the Financial Times with a detailed analysis suggesting that the May 6 Flash Crash illustrates the need for market reform in six areas. GETCO founders Daniel Tierney and Stephen Schuler say that reform needs to encompass transparency, naked sponsor access, technology, flash order visibility, regulatory uniformity, [...]
SEC to Mash Flash Crash with Rule 613?
For a proposed rule that could affect millions of trades a year, the Security and Exchange Commission Rule 613 audit trail scheme has elicited minimal comment. In contrast, proposals relating to short selling have promoted deluges of comment letters, including so much from the lunatic fringe that the Commission has to triage the letters to [...]
