A Chinese brokerage company has decided to begin using an automated trading platform supplied by US companies, demonstrating the increasing interest in fast, automated trading systems in China. Speaking of electronic trading, exchanges in Tokyo and Spain were both offline yesterday for several hours as their systems experienced malfunctions. Warsaw Exchange takes stock and weighs its options for the future, and looks for growth in derivative products. In First Read today, you’ll find MarketsWiki.tv interviews with Ben Van Vliet of IIT talking about high-speed trading; Jim Downs of Connamara Systems talking about CFTC Rule 1.73 and its impact on the…
Tag Archives: hft
Yesterday was my first meeting in Washington, DC as a member of the CFTC’s Technology Advisory Committee, or TAC 2.0 as it is called. The meeting featured reports from working committees on aspects of high frequency trading, or HFT, as well as presentations about SEFs. The first task from Working Group #1 was to define what HFT is. The working or provisional definition of HFT from Working Group number #1 was: High frequency trading is a form of automated trading that employs: (a) algorithms for decision making, order initiation, generation, routing, or execution, for each individual transaction without human direction;…
John Lothian Newsletter: NYSE Sees Danger Of Exchanges Becoming ‘Showrooms’ For Prices; HFT curbs may take Europe ‘back 7 years’; Hedge funds may be allowed direct access to China markets John Lothian Newsletter,Newsletter
NYSE’s Niederauer sees the danger of a exchanges becoming a place where traders browse for quotes before doing their actual trading off-exchange. The FIA EPTA in Europe warns that HFT regulation and slowdowns may move market progress back several years. Chinese regulators are considering allowing foreign hedge funds to directly trade in domestic companies and financial products. In the top box, John Lothian discusses the importance of reading what one is given; and you’ll also find a reminder, in case you missed yesterday’s special report, to come help us improve MarketsWiki next week.
John Lothian Newsletter: US Appeals Court Revives ISE Patent Case Against CBOE; CME said to be among bidders for London Metals Exchange; Hong Kong markets must adapt, SFC says John Lothian Newsletter,Newsletter
A US appeals court judge reviews the patent decision between ISE and CBOE, and decides to revive the 5+ year running disagreement. The LME says it has received several bid proposals for its purchase, and CME Group may be among the bidders. The Hong Kong exchange (coincidentally also bidding for LME) is being warned by the regional regulator that it’s vulnerable to sticky HFT, dark pool and other situations that are common in other parts of the world, and that it’s time to get moving to address those issues. In the top box, you’ll find a link to Doug Ashburn…
John Lothian Newsletter: Happy Flash Crash; Nasdaq to Launch New Stock-Options Trading Venue; Bids for the London Metal Exchange Due Monday John Lothian Newsletter,Newsletter
The flash crash was two years ago; high-frequency trading since then has bred high-frequency analysis over unsupervised algorithmic trading, but less consensus or operational changes. Nasdaq is going to launch a new options platform, too! Concern is growing that since the number of people trading options isn’t increasing exponentially, adding lots of new options venues will do little other than fragment the existing order pool. And if anyone else wants to bid for LME, today is the day to get them in.
John Lothian Newsletter: HFT slows down in US ahead of exchange action; Weighing SEC’s Crackdown on Fraud; Lenders Again Dealing Credit to Risky Clients John Lothian Newsletter,Newsletter
High frequency trading is on its way to being named “a little less frequency trading”, as activity slows down in the face of exchange rules against certain kinds of order activity. The SEC has passed the century mark in enforcement actions related to the financial crisis, but questions are still pending as to whether the agency has been effective enough. In the “This rock looks familiar” department, banks are once again urging high risk borrowers to take on more debt. And in today’s top box, Simon Rostron of Rostron Parry gets gussied up and bare-kneed in an appeal for kids.
Former SEC Chairman David Ruder Discusses the ‘Flash Crash’ & Dodd-Frank (Part 1 of 2) Interview,Regulation,Tech / HFT,Video
Northwestern Law School professor emeritus David Ruder talks to editor/producer Nicole V. Rohr about his experience as SEC chairman during Black Monday in 1987, and also about what stemmed from the subsequent flash crash in May 2010. Ruder was a part of the President’s Working Group on Financial Markets in 1988 and more recently worked on the Joint CFTC-SEC Advisory Committee on Emerging Regulatory Issues. He discusses findings and changes to rules surrounding circuit breakers, dark pools and naked access. View Part 2 here.
John Lothian Newsletter: CFTC Won’t Delay Position Limits; Regulators inching forward on Dodd-Frank rules; Bring Back Boring Banks John Lothian Newsletter,Newsletter
The CFTC rejects the idea of further consideration on position limits, and moves forward with its rules. With regard to Dodd-Frank, however, rule adoption continues at a snail’s pace. Calls arise from economists and bloggers to return banks to an old and tested role: that of a place where money is cultivated in a boring, slow and relatively-low-risk manner. In the top box, JJLCO announces that GFI Group has joined as a JLN sponsor; and Leo Melamed takes aim at Bart Chilton’s cheetah.
The latest news on the MF Global bankruptcy and fallout, published in the John Lothian Newsletter (subscribe here) the morning of December 9, 2011. In the wake of the MF Global bankruptcy, John Lothian Newsletter has created a special section on JohnLothianNewsletter.com devoted to news, information and commentary. The section features archived news stories featured in the John Lothian Newsletter, analysis and breaking news. Check regularly for updates. See the MF Global news section here.