HFT Rules: Rules for the Algo Highway

Customer confidence has been hit by a number of different events over the past several years and high frequency trading (HFT) problems have been among them. Ben Van Vliet, assistant professor of finance, Stuart School of Business, Illinois Institute of Technology has been looking the creation of a standard set of rules high frequency trading participants can use to ensure safer markets. Van Vliet has helped initiate the AT 9000 system, which would set standards for HFT design, backtesting, implementation and portfolio and risk management. Van Vliet says its important that the industry support such a project, rather than wait for regulators to dictate new standards and rules for participants.

Also see — HFT Rules: Three Part HFT Harmony

AT 9000 High-Frequency Trading Resources

  • Ben Van Vliet on MarketsWiki (link)
  • AT 9000 website  (link)
  • High-frequency trading on MarketsWiki (link)
  • High-frequency trading regulation on MarketsReformWiki (link)
  • Ben Van Vilet spoke at the MarketsWiki Questions: Exploring Financial Technology event on October 5, 2011 in Chicago. He addressed Question 6: What impact will technology have on high frequency trading, beyond improving speed? (link)
  • Quality Money Management: Process Engineering and Best Practices for Systematic Trading and Investment by Ben Van Vliet and Andrew Kumiega (link)
  • “Applying ISO 9000 Standards to High Frequency and Automated Trading” on HFT Review (link)