Flash Boys. Synopsis[edit] The book centers on several people, including Sergey Aleynikov, a one-time programmer for Goldman Sachs, and Bradley Katsuyama, the founder of IEX, the Investors' Exchange.[1][2] Flash Boys starts out describing the new construction of Spread Networks' secretive 827-mile cable running through mountains and under rivers from Chicago to New Jersey that would reduce the journey of data from 17 to 13 milliseconds.[4] The speed of data becomes a major theme in the book; the faster the data travels, the better the price of the trade.
Lewis claims access to this fiber optic cable, as well as other technologies, presents an opportunity for the market to be controlled even more by the big Wall Street banks. To counter this disadvantage to investors, Katsuyama bands together a team that sets out to develop a new exchange, called IEX, to make the playing field for trading fairer.[5] Reception[edit] Another reviewer asked: "Ironically, the Flash Crash itself was just glossed over. About. FIA EPTA supports transparent, robust and safe markets with a level playing field for all. We believe these goals are promoted by opening markets to competition and guaranteeing fair access to participants. FIA EPTA members believe principal traders contribute significantly to this goal by providing liquidity and enabling immediate risk transfer by others. The FIA European Principal Traders Association represents traders in Europe that trade their own capital The association will voice traders’ opinions to legislators and regulators in Brussels and EU member states The association will be headquartered in Brussels with independent governance under the FIA brand Candidate members are requested to underwrite the principles of the FIA EPTA A joint approach by principal traders can increase the impact of advocacy in a dynamic landscape We invite all principal trading firms active in Europe to join as members of the FIA EPTA Scope of the FIA EPTA Benefits of the FIA EPTA.
High Frequency Trading and Long-Term Investors: A View from the Buy-Side by Nataliya Bershova, Dmitry Rakhlin. Nataliya Bershova AllianceBernstein LP Dmitry Rakhlin AllianceBernstein LPNovember 27, 2012 Journal of Investment Strategies, Vol. 2, No. 2, pp. 25-69, Spring 2013 Abstract: With the proliferation of high-frequency trading (HFT), understanding the effects of HFT on market quality and the opportunities that HFT creates for long-term (LT) investors is important in building an efficient regulatory framework.
Number of Pages in PDF File: 62 Keywords: High Frequency Trading, Liquidity, Trading Costs JEL Classification: G12, G15 Accepted Paper Series. Home. The Diversity of High Frequency Traders [Hagströmer, Norden] - HFT Review's bookmarks - HFT Review. Abstract: The regulatory debate concerning high frequency trading (HFT) emphasizes the importance of distinguishing different HFT strategies and their influence on market quality. Using unique data from NASDAQ OMX Stockholm, we are the first to empirically provide such a distinction for equity markets. Comparing the behavior of market making HFTs to opportunistic HFTs (arbitrage and momentum HFT strategies), we find that market makers constitute the lion share of HFT trading volume (63-72%) and limit order traffic (81-86%).
Furthermore, market makers have higher order-to-trade ratios, lower latency, lower inventory, and supply liquidity more often than opportunistic HFTs. In a natural experiment based on tick size changes, we find that both market making and opportunistic HFT strategies mitigate intraday price volatility. Hagströmer, Björn and Norden, Lars L., The Diversity of High Frequency Traders (September 27, 2012). Available at SSRN: Tick size. In financial markets, a tick size is the smallest increment (tick) by which the price of stocks,[1] futures contracts[2] or other exchange-traded instrument can move. The purpose of a tick is to balance price priority with time priority.
If the tick is too small then too much of a preference is given to price priority meaning that market makers and the general public will have less of an incentive to post their orders well in advance since people can jump ahead of them by increasing their price by a small, virtually inconsequential, fraction. If the tick is too big then the opposite happens and time priority is given far too much of an advantage. The size of a tick is picked to basically balance those two priorities. Tick sizes can be fixed (e.g., USD 0.01) or vary according to the current price (common in European markets) with larger increments at higher prices.
See also[edit] Commodity tick References[edit] Trading algorithmique. De nombreux marchés fonctionnent de manière automatisée : les ordres d’achat et de vente sont transmis sous forme électronique à une plateforme de négociation, confrontés par celle-ci pour déterminer un prix, puis exécutés et confirmés aux donneurs d’ordres, par des processus entièrement automatiques. C’est le cas des marchés d’actions, des options, futures, ETF, et en partie du forex. Avec le trading algorithmique et le trading à haute fréquence, ce processus d’automatisation se propage en amont de la plateforme de négociation pour gagner le monde des investisseurs. On peut distinguer 2 étapes dans le processus de négociation : la prise de décision fondée sur une stratégie (que celle-ci soit de court, moyen ou long terme) et une appréciation des conditions du marché d’une part, et l’exécution de cette décision, qui va se traduire par l’émission d’ordres d’achat ou de vente vers une ou des plateformes de négociation, en essayant d’en minimiser l’impact sur les conditions de marché.
Global Trading Trends Survey Full Report and Analysis. Over 600 market professionals responded to the Automated Trader Global Trading Trends Survey, in the process revealing fascinating insights into a wide range of topics, and highlighting the extent to which firms now use cutting edge technologies, exotic data and plenty of innovative thinking as they to seek to differentiate themselves and find their edge. We also gained valuable feedback on the market's thoughts and opinions around topics such as regulation and market structure. Automated Trader are pleased to offer a comprehensive report on the survey findings. The report provides highly detailed information on what, where and how firms are trading, plus the types of data, algos and technology that are either in use already or are soon to be deployed, together with unique insights into the key emerging trends taking place in global markets.
The report is essential reading for any business that is actively trading or provides a product or service to the trading community.