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Tag Archives: algorithmic trading

HFTers adjust; “Low” VIX in context; Chinese firms rush to FX hedges Newsletter,Options

Lead Stories High-frequency traders adjust to overcapacity and leaner times Nicole Bullock – Financial Times Recalling the years around the financial crisis may still bring a shudder to many on Wall Street, but for high-speed traders 2008-2009 were pay dirt. The high-frequency trading industry was still in an early stage. Recent regulatory change, opening the way for competition, and computing advances had paved the way for its rapid development. As markets took fright through the crisis, there was plenty of price volatility and high volumes of asset dealings — the raw materials for any trader to make money. jlne.ws/2ydkdKX ****SD:…

Problems, Solutions and Results – Elaine Wah Feature,MarketsWiki Education,MWEd,Video,video

“Ultimately I think that anyone who believes in fairness, or believes that people should compete on the merits of their ideas and hard work rather than advantages that they have purchased, can appreciate why IEX was created and why it has succeeded so far.” In this video from MarketsWiki Education’s World of Opportunity event in New York, Elaine Wah, who works in market quality at IEX, discusses algorithmic trading strategies and the effects on investors. IEX was built with the goal of protecting investors as well as providing better execution quality. The exchange also wants to level the playing field…

Long-Term Investors are Gamblers?; Insider Trading Case Tests Friendship; Math Geeks Scramble to Defend Index Boon John Lothian Newsletter,Newsletter

First Read Hits & Takes By JLN Staff People lined up on LaSalle Street at midday yesterday like there was a sports championship parade happening. Instead, it was just an eclipse.~JJL John M. Ruth has joined Grey Street Capital as Chief Operating Officer. Ruth was formerly the CEO of ABN AMRO Clearing Chicago LLC.~JJL Check out SGX‘s Bull Charge, Climb for Charity.~JJL Cinnober has taken over the @MovetoStockholm Twitter handle for the week.~JJL Bruce Tuckman was appointed chief economist at the CFTC yesterday. And tells us he couldn’t be Chicago Mayor Rahm Emanuel‘s older brother. ~SD At the NFA yesterday,…

U.K. Regulator Seeks Brexit Bridge This Year to Avoid Cliff-Edge; Barclays Chairman ‘Confident’ London’s Euro-Clearing Hub Is Safe; Erroneous Stock Prices Spread by Third-Party Vendors, Nasdaq Says John Lothian Newsletter,Newsletter

First Read MarketsWiki Education World of Opportunity Top Videos 1. Donald Wilson, DRW Trading Group – Reminiscences (and Prognostications) of a Futures Operator 2. Blair Hull – Getting the Edge: Blackjack and the S&P 500 3. Haim Bodek, Decimus Capital Markets – A Flash Course on Market Structure 4. Peter Borish, The Quad Group – Trading Traps: Too Many to Count 5. Ray Cahnman, chairman, Transmarket Group – Me, Us & You: How Trading Works /goo.gl/hv8qXm ***** According to the number of plays on Youtube, here are the top videos from the MarketsWiki Education series through the years. The top…

The Volatility Paradox: Calm Markets but Soaring ‘Fear Gauge’ Trading; European Index Derivatives Markets Positioned to Support Trading Needs of Investors; A hot new hedge fund is based on smart computers picking off dumb ones Newsletter,Options

Observations & Insight EDITOR’S NOTE: JLN Options is happy to have Henry Schwartz, President of Trade Alert, as a guest editor this week. Take it away Henry! Complex Orders and Daily Options Volume Henry Schwartz – Trade Alert It’s a great honor to edit the JLN Options newsletter this week because I have always found it to be a crucial source of timely and relevant news (and not ‘fake news’) for professionals in our dynamic industry! Tapping into the massive data stores we have collected over the past decade at Trade Alert, I will do my best to highlight a…

Bill Harts, Modern Markets Initiative – How a Small Group of Traders Improved Markets for All Feature,MarketsWiki Education,MWEd,Regulation,Tech / HFT

“The most liquid stocks in the world used to trade at a minimum spread of one-eighth, but was quite often trading at a quarter spread. If you were an average retail investor buying 100 shares, you would have been paying an extra $25 for that stock, just in terms of the spread costs. Today, that quarter spread is less than a penny.” The 2014 release of Michael Lewis’ book “Flash Boys” unleashed widespread criticism of the automated trading community amid Lewis’ assertion that markets are “rigged” against small investors. According to Bill Harts, CEO of the Modern Markets Initiative, nothing…

Tayloe Draughon, Neurensic – Futures Industry AI and Machine Learning Feature,MWEd,Mwiki,Regulation,Video

“As you seek worlds of opportunity, look for areas in which there are problems, because if somebody is having problems, there are going to be opportunities.” Recent advancements in technology have led to a monstrous spike in trades and trade messaging. Meanwhile, new regulations are requiring banks, brokers, dealers and futures commission merchants to not only store all of this new data, but also to conduct surveillance for trade infractions such as spoofing, layering or “banging the close.” One particular challenge is that these new regulations require proof of intent, that is whether a trader or trade algorithm intentionally broke…

Peter Nabicht, 12Sided Technology – The Implied Job Descriptions in Finance Feature,MarketsWiki Education,MWEd,Mwiki,ReformWiki,Tech / HFT,Video

“Markets are an ultra-complex socio-technical system. That is a thing; Google it. There are three examples regularly given of such systems – huge cities, the space shuttle program, and financial markets. That’s how complex and interconnected we are.” Have you ever lost a million dollars in 4 ½ seconds? Neither have we. Peter Nabicht, however, once wrote an algorithmic trading program that did exactly that, when one of his teammates misplaced a decimal on a minor tweak to the algo. Though the blame could have easily gone to Nabicht and/or one his colleagues, none of them was fired over the…

FIA’s Walt Lukken on Reg AT and the 2016 Agenda Blog,Regulation,Video

Walt Lukken, president and CEO of the FIA, spoke with JLN about what is in store for the rest of the year at the trade organization. The FIA has been coordinating with 10 working groups on what upcoming rules about automated trading (Reg AT) should look like for the futures industry. Lukken said that the FIA believes it would be best to break Reg AT into two more manageable parts.  The first portion would focus on getting pre-trade risk controls up to snuff, and the second part would delve into the more contentious parts of Reg AT, such as definitions…