High Frenquency trading
Robot wars: How high frequency trading changed global markets A controversial trading practice may be living on borrowed time (Photo: Shutterstock) Welcome to the world’s most intense electronic battle. It’s waged on world stock markets and the ammunition is tiny fractions of pennies, fired through super-charged computers. The object is to wipe out the opposition. The theatre of war is a long way from the raucous bear pit of baying stock traders. Instead, capital is unleashed in a cavernous space, lined with banks of computer servers and chilled by air conditioning.
Skynet is *fuc…* your economy : oh my brain ! (le HFT — High Frequency Trading — est très certainement l’une des causes importantes des casse-gueules à répétitions des « marchés », mais qu’est-ce qui fait tourner ce HFT ? Petit essai de vulgarisation du concept sous-jacent de la boucle de rétroaction Skynet (joli surnom emprunté au film « Terminator » où l’intelligence artificielle mondiale créée par une entreprise éponyme (Skynet) déclenche la perte de l’humanité en retournant les robots contre les êtres humains…) de la finance… « L’I.A de la finance internationale, Skynet, vient de couler l’économie de ton pays et t’emm…toi et tes 60 millions de compatriotes…bip… » C’est à peu près le message que l’on pourrait recevoir des ordinateurs impliqués dans Le High Frequency Trading, largement en cause dans la crise financière actuelle, comme un article récent sur Reflets l’a très bien expliqué. Mais comment ça marche ce truc ?
Interview - Farzine Fazel : « Les principaux acteurs du Trading Haute Fréquence sont des boutiques spécialisées ou des Hedge Funds » Nous faisons le point sur le Trading Haute Fréquence avec Farzine Fazel et Mohamed Radjabou, respectivement Senior Partner et consultant chez Capco qui suggèrent d’encadrer cette activité qui recèle un potentiel de déstabilisation des marchés dans leur ensemble... Next-Finance : Plusieurs grandes banques affirment ne pas prendre part à ce type d’activités. Quels sont les principaux acteurs du Trading Haute Fréquence ? Farzine Fazel et Mohamed Radjabou : Effectivement on ne trouve pas forcément d’acteurs connus du grand public dans le Trading Haute Fréquence.
60 Minutes - High Frequency Trading
High-frequency trading on Vimeo
Max Keiser and Ellen Brown discuss High Frequency Trading
Exclusive: Regulators seek trading secrets WASHINGTON/NEW YORK (Reuters) - U.S. securities regulators have taken the unprecedented step of asking high-frequency trading firms to hand over the details of their trading strategies, and in some cases, their secret computer codes. The requests for proprietary code and algorithm parameters by the Financial Industry Regulatory Authority (FINRA), a Wall Street brokerage regulator, are part of investigations into suspicious market activity, said Tom Gira, executive vice president of FINRA's market regulation unit. "It's not a fishing expedition or educational exercise. It's because there's something that's troubling us in the marketplace," he said in an interview. The Securities and Exchange Commission, meanwhile, has also begun making requests for proprietary algorithmic trading data as part of its authority to examine financial firms for compliance with U.S. regulations, according to agency officials and outside lawyers.
By Eva Szalay Everyone knows that high-frequency traders are the evil geniuses of the foreign-exchange market, right? They damage liquidity, swoop aggressively on tiny price errors, curdle milk with their oh-so-fancy computers and generally make the market harder for everyone to navigate. That’s what their detractors say. But the Bank for International Settlements, no less, doesn’t seem to agree. High-Frequency Trading Is Evil, Right? Not So, Says the BIS - The Source
Goodbye High Frequency Trading - Regulators Seek Secret HFT Codes The crusade against High Frequency Trading which Zero Hedge started well over two years ago, is now coming to an end. Reuters reports that U.S. securities regulators have "taken the unprecedented step of asking high-frequency trading firms to hand over the details of their trading strategies, and in some cases, their secret computer codes." As everyone knows, the only thing of value within the sub-penny scalping HFT universe are the odd nuances in computer code.
How High Frequency Trading Affects The Market | xTiburon.com
Skynet begins to learn, at a geometric rate.It becomes self-aware at 2:14 a.m. eastern time, August 29.In a panic, they try to pull the plug.-- Terminator 2 There is a general view that one way or another the end result of all the high frequency and algorithmic trading will be a blowup. But I don’t think the risk is as big as many are making it out to be. First, let me point out the difference between high frequency trading and algorithmic trading. Both execute using computers, and since computers work really fast, both can be accused of whatever sins are embodied in millisecond trading. High frequency trading is a type of proprietary trading. Risk from High Frequency and Algorithmic Trading Not as Big as Many Think
"It's Not A Market, It's An HFT 'Crop Circle' Crime Scene" - Further Evidence Of Quote Stuffing Manipulation By HFT Recently we posted a required reading analysis by Nanex in which the market trading analytics firm presented irrefutable evidence of quote stuffing by HFT algorithms in tens of stocks, in which thousands of cancelled quotes would reappear each second with a definitive periodicity and regularity, around the time of the May 6 flash crash. Aside from the fact that it is illegal to indicate a quote without a trade intent, this form of quote stuffing is in fact manipulative when conducted by HFT repeaters in specific "shapes" as it actually moves the NBBO actively higher or lower, in cases pushing the bid/offer range up to 10% higher without even one trade ever having occurred, simply by masking a big block order which other algos interpret as bid interest and pull all offers progressively or step function higher (or vice versa, although we have rarely if ever seen the walking down of a stock over the past 18 months).
Quant trading: How mathematicians rule the markets 25 September 2011Last updated at 19:22 ET By Richard Anderson Business reporter, BBC News Mathematicians and their trading programs are increasingly taking the place of professional investors in financial centres across the world Trading floors were once the preserve of adrenalin-fuelled dealers aggressively executing the orders of brokers who relied on research, experience and gut instinct to decide where best to invest. Long ago computers made dealers redundant, yet brokers and their ilk have remained the masters of the investment universe, free to buy and sell wherever they see fit.
Apparently, Google does not have the best programmers, High Frequency Trading firms do : programming I am going to write this once, because I think this is a misconception that does not take into account 90% of what high frequency trading does. A little background, my company backs high frequency traders (I personally am an investor in other data-driven non-financial startups that use a lot of machine learning). First of all, you may think that trading is a zero sum game, but speculators do add value to price discovery and liquidity.
Algorithmic Trading is Not High Frequency Trading It’s not every day I come across a widely-shared article whose first sentence is factually incorrect, but a 9/9/11 story in Computerworld UK, “Algorithmic stock trading rapidly replacing humans, warns government paper”, is just such a creature. The first sentence begins, “Algorithmic trading, also known as high frequency trading (HFT), is rapidly replacing human decision making, according to a government panel…” Problems
How and Why Wall Street Programmers Earn Top Salaries