Tag Archives: high speed traders

Chicago Fed Study Blasts the Lid Off of High Frequency Trading

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

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Fed Warns High-Frequency Trading Firms

By Arash Massoudi in New York and Philip Stafford in London Many high-frequency trading firms are taking shortcuts in their risk controls as they seek out faster ways to trade, a US regional Federal reserve bank has warned. The study … Continue reading

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Could High Frequency Trading Lead To Our Own ‘Flash Crash’?

The dangers of massive high frequency trading are becoming increasingly clear in equity markets. Greg Medcraft, the chairman of corporate regulator ASIC, confirmed to a Federal parliamentary committee: “Regulators around the world are very concerned about the systemic risk on … Continue reading

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Super Funds Call for High Frequency Trade Ban

Australian regulators should consider banning high-frequency trading in the equities market, according to Industry Super Network, which represents the $1.3 trillion pension funds industry. High-frequency trading, in which computer algorithms are used to buy and sell stocks in fractions of … Continue reading

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Jefferies Converts Knight Preferred, Boosting Shares Outstanding

Jefferies Group Inc. (KCG), the New York- based brokerage that helped arrange a $400 million bailout for Knight Capital Group Inc., has converted almost all of the preferred shares it acquired in the transaction to common stock. The conversion almost … Continue reading

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Electronic Trading Accidents Can Help Improve Big Data Management

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 … Continue reading

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Trading on Data Becoming an Increasingly Blurry Picture

According to Geoffrey Rogow, investors with the superfast computers and algorithmic-trading software needed to read and act upon the low-latency line’s digitalized information will inevitably be the first to trade on the news. The advantage these high-tech traders enjoy is … Continue reading

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Searching for a Speed Limit in High-Frequency Trading

From workaday suburban offices here, across from a Gymboree, these two men are taking on one of the most powerful forces in finance today: high-frequency trading. H.F.T., as it’s known, is the biggest thing to hit Wall Street in years. On … Continue reading

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According to Foresight Working Paper, Rules to Tackle “Algo” Speed Traders Could Backfire

As reported by Tommy Wilkes from Reuters, the European Union’s draft law MiFID II, a reform of Brussels’ earlier Markets in Financial Instruments Directive (MiFID), will introduce tougher regulation of financial markets including for high- frequency trading. Speed traders use powerful … Continue reading

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Social benefits of high frequency trading

The evolution of financial markets through technological development has been going on for centuries, with criticism about such developments going back to the invention of the telegraph in the mid-19th century. And so it goes with the comparatively recent arrival … Continue reading

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