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Tag Archives: automated trading

What investors misunderstand about the politics of rage; CFTC set to tweak rules for automated trading; Wall Street Bonuses to Decline John Lothian Newsletter,Newsletter

First Read A Big Deal in Chicago, U.S. and the World By John J. Lothian and Jim Kharouf – JLN Tomorrow is election day in the United States. It’s almost hard to write the first word of our country’s name because we are hardly united these days – divided over everything from political idealism, immigration, terrorism, globalization, capitalism to the many other isms and phobias that threaten what we stand for as a country, and arguably THE standard bearer for democracy. And yet, here we stand on the eve of the election faced with a choice to make between two…

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…

Mark Spanbroek, European Principal Traders Association – Financial Markets 2.0 video

“What trading is really about is finding an algorithmic, or systematic way, to analyze the market. And this is done with data.” Mark Spanbroek’s trading career spanned the transition from the old world of trading pits to the new world of algorithms. He now serves as acting chairman of the FIA European Principal Traders Association (EPTA). In this MarketsWiki Education presentation, Spanbroek showcases both worlds – Financial Markets 1.0 and 2.0 – from the pit trader in the multi-colored trading jacket to today’s trader, which he says is not a trader, but rather an engineer, and today’s trading strategy is…

John Lothian Newsletter: CFTC votes to propose registration, risk controls for automated-trading firms; If China Killed Commodity Super Cycle, Fed Is About to Bury It; Europe’s Mifid markets rules set for year’s delay John Lothian Newsletter,Newsletter

First Read Autocrats By John Lothian, Doug Ashburn, and Jim Kharouf – JLN It would be safe to say that in the months prior to yesterday’s CFTC proposed rule on automated trading, that those who spoke to the agency were convinced that the rule would be more flexible than the one that was rolled out. The rule, now dubbed Regulation AT, addresses everything from what kinds of risk controls should be in place when creating an automated trading system to post trade reporting requirements so the CFTC knows that you know what you’re doing when running an algo program. All…

John Lothian Newsletter: Exchanges and interdealer brokers reshape to face fragmenting market; ICE Futures Singapore Launches with Commodity and FX Contracts Serving Asian Markets; GMEX’s CMF granted CFTC approval John Lothian Newsletter,Newsletter

First Read Boy Scouts Search for a New Path; Now is not the time for the Boy Scouts of America to recede from its long-standing national role. By MICHAEL S. MALONE – WSJ Having passed through the controversy over its acceptance of gay members in 2013 and gay leaders this year, the Boy Scouts of America now finds itself at a crossroads. The path it chooses may have a profound and enduring impact on American culture. For a century now, the BSA has been, and remains, the largest youth organization in the United States. There are 2.6 million Cub Scouts,…

A Tale of Two Issues: Zach Ziliak Breaks Down the HFT Debate Interview,Regulation,Tech / HFT,Video

Zach Ziliak has seen both sides of the HFT universe. As a quant at an investment bank, he developed trading algorithms. As an attorney, he represents firms covering the whole Investment spectrum. As a participant in the AT 9000 initiative, he is working on the development of quality management standards for the testing of high frequency and other automated trading systems. “Those of us exposed to the industry have been thinking about this for a long time,” says Ziliak. “But now because of Flash Boys, suddenly it’s conversation at the bars.” He says that any kind of rules will create…

HFT Rules: Rules for the Algo Highway Regulation,Tech / HFT,Video

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…

HFT Rules: Three Part HFT Harmony Regulation,Tech / HFT,Video

HFT Rules: Three Part HFT Harmony

High-frequency trading (HFT) has been in the financial press a lot over the past several years. From the Flash Crash of 2010 to the collapse of Knight Capital in 2012, trading glitches and the negative impact of HFT on markets and investor confidence is well-documented. In this segment of the Restoring Customer Confidence series, Mayer Brown attorney Zachary Ziliak outlines the three sources that will address HFT and help restore customer confidence. Ziliak says regulatory bodies will likely continue to address HFT guidelines, exchanges are imposing new fees on HFT practices and AT 9000, standards system for HFT practices, will…