Monthly Archives: July 2012

CFTC Working Group Tries to Define High Frequency Trading

Posted on July 31, 2012 by

The Technology Advisory Committee of the Commodity Futures Trading Commission met on June 20 to discuss, among other matters, the proper definition for high frequency trading. They were there to hear from four working groups. The first of these – … Continue reading →

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Paris traders brace for financial transactions tax

Posted on July 31, 2012 by

Lionel Laurent stated in a report for Reuters that French traders hoping for a summer break from the eurozone crisis are instead likely to be grappling with the fine print of a new tax on financial transactions, due to come … Continue reading →

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Earnings, Easing Hopes Lift Asia Markets

Posted on July 31, 2012 by

Reported by WSJ today that most Asian markets advanced Tuesday on continued hopes for policy easing from central banks and on some positive earnings reports, with Japanese and Hong Kong stocks among those clinching a fourth straight day of gains. … Continue reading →

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Mark Cuban: High-Frequency Traders Are the Ultimate Hackers

Posted on July 30, 2012 by

The Wall Street Journal reported that Mark Cuban is best-known for his success as a businessman and pro basketball owner. But in the past few years, he has also gained a reputation as one of the most prolific critics of high-speed computer … Continue reading →

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Algo Growth Among Factors Altering Commodity Business Practices, SunGard Says

Posted on July 30, 2012 by

The AutomatedTrader reported that a London based technology services group SunGard said it had identified 10 trends that are changing the nature of commodities trading as a host of fundamental shifts and other factors such as increased algorithmic trading push … Continue reading →

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Mifid Amendments Threaten HFT Platform Access

Posted on July 30, 2012 by

Kathy Alys stated in the FX week that a set of parliamentary amendments to the Mifid review threaten to ban ‘sponsored access’ – a popular route for high-frequency traders to access platforms without going through a prime broker. A set of draft … Continue reading →

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Are Dark Pools the New Enemy?

Posted on July 30, 2012 by

Tradebot founder Dave Cummings had more tricks up his sleeve. Around 2004, he began to develop a strategy to make money trading in dark pools, a rising force in the early 2000s. While institutional traders were running from the lit … Continue reading →

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The perils of high frequency trading

Posted on July 30, 2012 by

Business columnist Adele Ferguson stated that a report released in the US on Friday into high frequency trading (HFT) has set the cat among the pigeons in the global equities markets as it challenges a number of studies that say HFT cuts … Continue reading →

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究竟什么是高频交易？

Posted on July 28, 2012 by

自从2010年5月6日影响美国企业和期货市场的臭名昭著“闪电崩盘”发生之后，高频交易（HFT）—-在极短暂的时间段之内利用大量工具获得极其微小的价格差异的交易应用， 已经引起人们的广泛的关注。 监管人员已经证实人为造成的期权市场错误是“闪电崩盘”的发生导火线。一个寻求停止大量持仓的交易员，以对冲现有的资产状况发起的标准普尔500指数期货（E-Mini S&P 500 Contract)的证券卖出合约。标准普尔500指数期货是目前世上最流行的股票指数期货合约，它在芝加哥商业交易所的Globex的电子交易平台上进行买卖。目前平均每日发生的E-mini交易量超过1400亿美元，远远超过合并的500只股票的美元交易量。 交易者选择使用卖出算法去执行他的命令。执行算法可以被制定为去使交易着重关注价格和时间以及多种因素的结合。 在这个特殊的例子中，交易者选择只去关注交易量，忽略价格和时间因素。因为价格和时间不是作为考虑因素，该算法能够在20分钟内以快如闪电的速度移动一整个位置。这个极快的E-Mini合约卖出导致E-Minis和企业的价格到达一个极低的不正常价格和严重的E-Mini市场以及个人企业的资金流动性问题。这个造成发展缓慢的企业股票跌价的多米诺效应就是有名的“闪电崩盘”。 Read More

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SEC votes in favour of high frequency trading audits

Posted on July 28, 2012 by

High Frequency Traders News reported that: a rule intended to ease the ability for exchanges to track information about high frequency trading was approved on July 11th by the Securities and Exchange Commission. The rule, narrowly approved by a 3 … Continue reading →

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