Electronic Trading Accidents Can Help Improve Big Data Management

Electronic Trading Accidents Can Help Improve Big Data Management

Electronic Trading Accidents Can Help Improve Big Data Management

From the report of Derek Klobucher (Forbes), more than a quarter of market participants find its current structure “very weak,” according to a recent TABB Group poll, which indicates that all-too-frequent computerized trading goofs are eroding market confidence. Last month’s Knight Capital tech tragedy killed almost 20 percentage points-worth of warm fuzzies.

That’s 26 percent of drivers behind the trading wheel feeling that the track is “very weak,” up from just 7 percent in June and 3 percent in May. Slowing down the markets would help prevent such disasters and restore investor confidence, according to more than 30 percent of asset managers polled.

But they aren’t taking into account the cost of easing off the accelerator.

Pedal to the Metal

There’s no yellow flag flying over the market yet. So decelerating electronic trading is a bad idea, Irene Aldridge of New Yorkhigh-frequency trading-based service provider ABLE Alpha Trading wrote last week.

“Modern market-makers’ profits are directly related to the number of market orders they service,” Aldridge said. “The more trades the market-maker can take on within a given fixed period of time, the higher is the market-maker’s profitability.”

Read More

About yocijourney

God does not play dice
This entry was posted in Breaking News, Business, CFTC, Events, Finance, High Frequency Trading, Insider Trading, Market Making, Regulatory Updates, SEC, TABB Group poll, World Economy and tagged , , , , , , , , , , , , , , . Bookmark the permalink.

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s