Monthly Archives: September 2012

Are Average Investors Getting Bilked by Wall Street Supercomputers?

Posted on September 25, 2012 by yocijourney

As long as there has been a Wall Street, there have been those seeking to skim a little (or a lot) off the top of the vast wealth changing hands in the markets each day. Though capital markets in America … Continue reading →

Posted in Business, Finance, Market Making, SEC, The Wall Street Journal, U.S. Economy, Wall Street | Tagged , , , , , , , , | Leave a comment

High-Frequency Trading: It’s Worse Than You Thought

Posted on September 25, 2012 by yocijourney

High-frequency trading, which already has a sullied reputation, is even worse than the critics have charged, a new survey shows. The Federal Reserve of Chicago recently asked 30 firms associated with the industry — traders, exchanges, vendors and others — to evaluate … Continue reading →

Posted in Business, Finance, High Frequency Trading, high-frequency journalism, Insider Trading, knight capital, Market Making | Tagged , , , , , , , , , , , , , , , | Leave a comment

Colocation: The Root of All High-Frequency Trading Evil?

Posted on September 25, 2012 by yocijourney

By Geoffrey Rogow Trading firms, from Wall Street banks to high-frequency hedge funds and market makers, spend millions each year to place their trading models right on exchange servers. It’s a big revenue generator for both traders and the exchanges, … Continue reading →

Posted in Breaking News, Business, Dark Pools, Finance, Flash Crash, High Frequency Trading, SEC, U.S. Economy | Tagged , , , , , , , , , , , , , , , , | Leave a comment

Germany Eyes Clampdown on High-Frequency Trading

Posted on September 25, 2012 by yocijourney

BERLIN (AP) — The German government plans to propose tighter regulation of computer-driven high-frequency trading on financial markets, a practise that has been blamed for undue spikes and drops in markets. Germany’s Finance Ministry said Tuesday a draft law will … Continue reading →

Posted in Breaking News, Events, Finance, High Frequency Trading, The Wall Street Journal, Treasury, U.S. Economy | Tagged , , , , , , , , , , , , , , , , | Leave a comment

Gaming the High Frequency Trading Programs (HFTs) for Fun

Posted on September 25, 2012 by yocijourney

There has been much debate and controversy about the negative effects of high frequency trading programs (HFTs).  The arguments range from stealing market liquidity, price manipulation, and unnecessary volatility to being responsible for the flash crash.  While there are many negatives to … Continue reading →

Posted in Breaking News, Finance, High Frequency Trading, Insider Trading, Market Making, Regulatory Updates, SEC, U.S. Economy | Tagged , , , , , , , , , , , , , , , , | Leave a comment

High-Frequency Trader Blows Whistle on Exchanges; Goldman’s New CFO Has Big Shoes to Fill: Roundup

Posted on September 21, 2012 by yocijourney

Former Goldman Sachs and UBS trader Haim Bodek went to the SEC after he learned that exchanges were offering some high-frequency traders a way to get their trades processed ahead of ordinary investors, according to The Wall Street Journal. Goldman Sachs’ Chief Financial Officer David Viniar will … Continue reading →

Posted in Business, Finance, High Frequency Trading, Insider Trading, knight capital, Market Making, NASDAQ, Regulatory Updates, SEC, U.S. Economy, Wall Street | Tagged , , , , , , , , , , , , , , , , , , | Leave a comment

SEC No Match For High-Tech Traders

Posted on September 20, 2012 by yocijourney

(By Stephen Foley and Arash Massoudi in New York) The Securities and Exchange Commission is hopelessly outgunned in resources and technical savvy by the computerised traders it regulates, a leading US senator has warned ahead of a hearing into recent stock … Continue reading →

Posted in Business, Finance, High Frequency Trading, knight capital, NASDAQ, Practitioners, Regulatory Updates, SEC | Tagged , , , , , , , , , , , | Leave a comment

Chicago Fed Study Blasts the Lid Off of High Frequency Trading

Posted on September 20, 2012 by yocijourney

We hear all sorts of reasons the little guy won’t buy stocks these days but the below graph, courtesy of a Chicago Fed study, might explain a lot of it. The above chart shows an astounding percentage of market trades going … Continue reading →

Posted in Business, Finance, High Frequency Trading, high-frequency journalism, Insider Trading, Market Making, Regulatory Updates, SEC | Tagged , , , , , , , , , , , , , , , , | Leave a comment

High-Frequency Trading: Made-up and Real

Posted on September 20, 2012 by yocijourney

Opinions on high-frequency trading still run the gamut. On one end of the spectrum we find individuals such as Mark Cuban, a successful Dallas-based businessman, who recently proclaimed that he is afraid of high-frequency traders. Mr. Cuban’s fears are based … Continue reading →

Posted in Business, Events, Finance, High Frequency Trading, knight capital, Market Making, U.S. Economy | Tagged , , , , , , , , , , , , , | Leave a comment

For Superfast Stock Traders, a Way to Jump Ahead in Line

Posted on September 20, 2012 by yocijourney

At issue is whether exchanges sometimes allow high-speed trading firms to trade ahead of less-sophisticated investors, potentially disadvantaging them and violating regulatory rules. The inclusion of Nasdaq and NYSE in this high-profile probe, and the role Mr. Bodek has played … Continue reading →

Posted in Breaking News, Business, Finance, Financial Instruments Directive, High Frequency Trading, high-frequency journalism, Insider Trading, knight capital, Treasury | Tagged , , , , , , , , , , , , , , | Leave a comment