Monthly Archives: May 2010

High-Frequency Trading Firms Not To Blame for Market Plunge

A big mystery seller of futures contracts during the market meltdown last week was not a hedge fund or a high frequency trader as many have suspected, but money manager Waddell & Reed Financial Inc. Continue reading

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Proprietary Trading and Hedge Fund Professionals at High-Frequency Trading Leaders Forum 2010 hosting High-Frequency Trading Leaders Forum 2010, “Innovating and Profiting from High-Frequency Trading in 2010 and Beyond”, this Thursday May 27th at the Flatotel. Continue reading

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Chairman Schapiro: “The events of last week are unacceptable”

In the written testimony submitted ahead of today’s congressional hearings, Chairman Schapiro admitted that “the technologies used for market oversight and surveillance have not kept pace with the technology and trading patterns of the rapidly evolving and expanding securities markets.” She concludes: “The events of last week are unacceptable. The Commission is considering a number of proposals that will address key issues raised on May 6 and we will move expeditiously to address all issues we determine caused or contributed to those events.” Continue reading

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High-Frequency Trading Conference to Provide Actionable Recommendations to Launch and Manage a High-Frequency Trading Operation

If there is a lesson from yesterday’s unprecedented market plunge, that is the need to implement risk management and quality controls in the operation of high-frequency trading systems. While some of the biggest firms in New York and Chicago might have made up to $200 million by the end of the day, others firms were forced to stop trading as they allegedly sought not to contribute to the volatility. Continue reading

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Did Senator Kaufman have a point about monitoring high-frequency trading?

The SEC needs to understand high-frequency trading no more than they need to understand trading in general, before making any attempts to regulate it. Regulations have been in place for decades, yet, trading exchanges and their participants have evolved quickly in the last decade, and therefore it is reasonable to expect that some monitoring procedures of the past need to be revisited. Yes, Senator Kaufman had a point, strengthening the monitoring of not only high-frequency, algorithmic or electronic trading but trading in general; Bernie Madoff was certainly not a high-frequency trader. Continue reading

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