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Tag Archives: algorithmic trading

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…

Let’s Pause a Moment: Keith Ross Talks Dark Pool Rules and IEX Interview,Regulation,Tech / HFT,Video

The addition of high speeds and multiple execution venues has altered the equity market structure in recent years. Now the SEC is weighing in with newly proposed rules on dark pools. Meanwhile, IEX, which rose to fame with Michael Lewis‘ Flash Boys, is trying to move from dark pool to full-fledged exchange. Keith Ross of PDQ Enterprises says transparency is a good thing, and a market pause has its benefits in alternate venues, but as an exchange could create chaos. When the Securities and Exchange Commission published its Regulation National Market System (Reg NMS) in 2005, only a small fraction of…

John Lothian Newsletter: NYSE Proposes Changes, as It Braces for More Volatility; Intercontinental Exchange launches U.S. Treasury index family; BOJ stuns markets with surprise move to negative interest rates John Lothian Newsletter,Newsletter

First Read Time to Get Out the Checkbook By John J. Lothian The New York Times editorial board has added some media influence to the debate about whether to tax transactions on Wall Street. With many of the major leading candidates for President espousing anti-Wall Street notions, it is time for Wall Street to get their checkbooks out and beat back this anti-market nonsense. However, it might not work as well this time. A President Donald Trump would not be beholden to Wall Street like other candidates. And a President Bernie Sanders would bring a lack of appreciation for Wall…

Lisa Dunsky, attorney Sidley Austin Interview,Regulation,Tech / HFT,Video

The CFTC’s new Regulation Automated Trading rule proposal aims to prevent self-trading. John Lothian News spoke with Lisa Dunsky, attorney at Sidley Austin, prior to the CFTC’s rule approval to discuss some of the issues surrounding self-trading, as well as how spoofing may factor in.