• Writing and Testing High-Frequency Trading Engines

    In Java, writing microsecond low-latency systems requires disciplined use of a subset of Java’s features, and testing and persistence provide additional challenges. This presentation looks at some of the solutions possible in Java and where the session’s speaker sees the future of high-frequency trading and Java. Author: Peter Lawrey Innovative developer of high performance Java Systems for competitive advantage. View more trainings by Peter Lawrey at https://www.parleys.com/author/peter-lawrey Find more related tutorials at https://www.parleys.com/category/developer-training-tutorials

    published: 05 Jun 2015
  • "60 Minutes" investigates high-frequency trading

    "60 Minutes" correspondent Steve Kroft revealed Sunday night how a few stock market insiders are making billions in high-frequency trading. Kroft spoke with Michael Lewis, the author of "Flash Boys," about how insiders are raising the costs of stocks for ordinary investors.

    published: 31 Mar 2014
  • Nanex's High Frequency Trading Model (Sped Up)

    Nanex released a video showing the results of half a second of worldwide high frequency trading with Johnson and Johnson stock. I simply sped up the footage to get a better feel of what it looked like. Blow Your Mind.

    published: 09 May 2013
  • Stock Market Insider Trading: High-Frequency Trading Transactions (2014)

    High-frequency trading (HFT) is a primary form of algorithmic trading in finance. Specifically, it is the use of sophisticated technological tools and computer algorithms to rapidly trade securities. HFT uses proprietary trading strategies carried out by computers to move in and out of positions in seconds or fractions of a second. It is estimated that as of 2009, HFT accounted for 60-73% of all US equity trading volume, with that number falling to approximately 50% in 2012. High-frequency traders move in and out of short-term positions at high volumes aiming to capture sometimes a fraction of a cent in profit on every trade. HFT firms do not consume significant amounts of capital, accumulate positions or hold their portfolios overnight. As a result, HFT has a potential Sharpe ratio (a mea...

    published: 02 Mar 2015
  • A Closer Look at High-Frequency Trading

    This is the VOA Special English Economics Report, from http://voaspecialenglish.com | http://facebook.com/voalearningenglish Once, stocks were traded through the open outcry system. Today fast, interconnected computers have mostly replaced the traders shouting prices on the floors of stock exchanges. Joe Saluzzi is a head of equity trading at Themis Trading in New Jersey. "The equity market has changed. It's no longer what you see on TV, it's no longer guys with colored jackets running around the floor anymore. .... The equity market is a bunch of co-located computers strung together by a bunch of wires, everyone trying to race to zero. The speed of light is the goal."Computers can process stock trades in thousandths of a second. Andrew Haines of Gain Capital is an online broker. "A mil...

    published: 02 Nov 2011
  • High Frequency Trading - Robots vs Humans

    Most of us have never heard of high-frequency trading. Yet, many experts predict that the next financial crisis will be caused by this new practice, invented by Wall Street. Thousands of computers are interconnected, buying and selling thousands of market shares every micro-second, with no human control or regulation. We delve into a mad financing world dominated by machines, or rather, by elaborate algorithms carefully developed by mathematicians. The ultimate goal? To reach maximum profit within a few seconds. But sometimes, software breaks down and creates, what experts call a “flash crack,” an instantaneous market collapse. We investigate the job of speed traders and expose the often shocking methods they use to reach their goals. This is part of the acclaimed ’Cash Investigations - Un...

    published: 09 May 2017
  • Nanex ~ Order Routing Animation ~ 02-May-2013 ~ JNJ

    We made another video that slows things down even more and shows 1/100th of a second of trading in Merck: http://www.youtube.com/watch?v=L5cZaIZ5bWc 1/2 second of trading activity in Johnson & Johnson (symbol JNJ) on May 2, 2013 This video was featured at Wired Business Conference (watch it now: http://fora.tv/2013/05/07/Nanex_CEO_Eric_Hunsader_Flash_Trading_Detective_Work) Follow us on twitter @nanexllc for Wall Street Breaking coverage. Set to lowest resolution for an "artistic rendering", or highest resolution for science. The animation tool that created this video was written in "C" using Windows GDI - simple lines, polygons and ellipses. We wrote it to explain to the SEC and CFTC (the regulators) how our markets work. We got the idea after realizing, in face to face meetings with ...

    published: 03 May 2013
  • What is a quant trader?

    http://www.onestepremoved.com/ Shaun Overton interviews Michael Halls-Moore, a quantitative developer. Mike jumped from postgraduate school straight into algorithmic trading, bringing all the academic expertise but having to figure out the real world of trading with other people's money. Mike talks about the differences between trading personal accounts and what the institutions look for in their trading strategies. http://youtu.be/Uw188vWQ2Hg

    published: 02 Dec 2013
  • 10 Seconds of Extreme Trading in Blackberry

    October 2, 2013 - Blackberry rallies from $7.60 to $8.00. Watch the deluge of quotes from Nasdaq (pink at 12 o'clock) overwhelm the system when the price ticks to the next level. Quote rates approach 40,000 per second on a 25 millisecond basis. More info in the description here: http://youtu.be/rB5jJuMP84E

    published: 02 Oct 2013
  • NYSE Speed Bump Gets Thumbs Up from SEC

    05/17/17 The SEC approved the introduction of a 'speed bump' on all trades on NYSE MKT. The electronic exchange (NYSE MKT) will be renamed NYSE American and bring a 350-microsecond delay for trading of the Big Board's sister exchange.

    published: 17 May 2017
  • Execute trades in microseconds

    Buy and sell 500 symbols in 2 seconds

    published: 13 Jan 2017
  • Executes trades in microseconds

    Executes 500 symbols in one second from frontend

    published: 13 Jan 2017
  • High Frequency Trading - Rabiolab

    A really interesting segment from the radio podcast Rabiolab. the Episode is titled 'speed' and this particular segment looks into the world of the stock exchange. In particular a practice that has recently become popular called High Frequency Trading. This is the same phenomenon that was blamed for the 2010 Flash Crash in which the market had the largest dip in decades. If you like this segment go to http://www.radiolab.org/ and donate to this amazing podcast.

    published: 22 Feb 2013
  • The Stock Market & the Economy: High-Frequency Trading and Wall Street Stock Traders (2013)

    High-frequency trading (HFT) is the use of sophisticated technological tools and computer algorithms to rapidly trade securities. HFT uses proprietary trading strategies carried out by computers to move in and out of positions in seconds or fractions of a second. Firms focused on HFT rely on advanced computer systems, the processing speed of their trades and their access to the market. Many high-frequency traders provide liquidity and price discovery to the markets through market-making and arbitrage trading; and high-frequency traders also take liquidity to manage risk or lock in profits. As of 2009, studies suggested HFT firms accounted for 60-73% of all US equity trading volume, with that number falling to approximately 50% in 2012. High-frequency traders move in and out of short-term ...

    published: 21 Aug 2013
  • Joe Saluzzi on High-Frequency Trading: The Equity Market Is Now Controlled By The Machines

    Joe Saluzzi, co-founder of Themis Trading LLC and outspoken exchange expert, is concerned with how high-frequency trading has brought the capital markets into uncharted - and dangerous - territory. "Things have changed," he cautions. With 50-70% of all trades being conducted by algorithms at micro-second time intervals, real human traders are increasingly challenged to understand how our markets actually work. "No longer do the technical patterns - that have lasted for years and years, and are written about all over - work anymore." In the following interview, Joe and Chris plunge into "dark pools" and other poorly-understood elements of our now-machine-dominated financial exchanges. The current system is fraught with risks of further "flash crash"-like disruptions, and at a fundmental l...

    published: 04 Nov 2011
  • Thoughts on Intraday Trading and the Costs of Trading

    Thoughts on Intraday Trading and the Costs of Trading. David Morrison Market Commentator and Trader comments. If you've found this video useful, please click the like button and share it with your friends and remember to SUBSCRIBE to remain up-to-date! A daily or intraday trader typically trades multiple times a day, and will be fighting against friction costs of brokers' commissions and slippage. So his system needs to be able to make more than those friction costs to provide you any ongoing profit to be available for compounding. Please comment. One of the interesting things that has happened in the last decade is that those friction costs (trading costs) have gone sharply down. II still recall spreads on Cable for instance at 6 ticks wide - how can you day trade that? Even in t...

    published: 02 Nov 2014
Writing and Testing High-Frequency Trading Engines

Writing and Testing High-Frequency Trading Engines

  • Order:
  • Duration: 1:07:52
  • Updated: 05 Jun 2015
  • views: 4205
videos
In Java, writing microsecond low-latency systems requires disciplined use of a subset of Java’s features, and testing and persistence provide additional challenges. This presentation looks at some of the solutions possible in Java and where the session’s speaker sees the future of high-frequency trading and Java. Author: Peter Lawrey Innovative developer of high performance Java Systems for competitive advantage. View more trainings by Peter Lawrey at https://www.parleys.com/author/peter-lawrey Find more related tutorials at https://www.parleys.com/category/developer-training-tutorials
https://wn.com/Writing_And_Testing_High_Frequency_Trading_Engines
"60 Minutes" investigates high-frequency trading

"60 Minutes" investigates high-frequency trading

  • Order:
  • Duration: 2:38
  • Updated: 31 Mar 2014
  • views: 26784
videos
"60 Minutes" correspondent Steve Kroft revealed Sunday night how a few stock market insiders are making billions in high-frequency trading. Kroft spoke with Michael Lewis, the author of "Flash Boys," about how insiders are raising the costs of stocks for ordinary investors.
https://wn.com/60_Minutes_Investigates_High_Frequency_Trading
Nanex's High Frequency Trading Model (Sped Up)

Nanex's High Frequency Trading Model (Sped Up)

  • Order:
  • Duration: 7:39
  • Updated: 09 May 2013
  • views: 53335
videos
Nanex released a video showing the results of half a second of worldwide high frequency trading with Johnson and Johnson stock. I simply sped up the footage to get a better feel of what it looked like. Blow Your Mind.
https://wn.com/Nanex's_High_Frequency_Trading_Model_(Sped_Up)
Stock Market Insider Trading: High-Frequency Trading Transactions (2014)

Stock Market Insider Trading: High-Frequency Trading Transactions (2014)

  • Order:
  • Duration: 2:46:06
  • Updated: 02 Mar 2015
  • views: 2028
videos
High-frequency trading (HFT) is a primary form of algorithmic trading in finance. Specifically, it is the use of sophisticated technological tools and computer algorithms to rapidly trade securities. HFT uses proprietary trading strategies carried out by computers to move in and out of positions in seconds or fractions of a second. It is estimated that as of 2009, HFT accounted for 60-73% of all US equity trading volume, with that number falling to approximately 50% in 2012. High-frequency traders move in and out of short-term positions at high volumes aiming to capture sometimes a fraction of a cent in profit on every trade. HFT firms do not consume significant amounts of capital, accumulate positions or hold their portfolios overnight. As a result, HFT has a potential Sharpe ratio (a measure of risk and reward) tens of times higher than traditional buy-and-hold strategies. High-frequency traders typically compete against other HFTs, rather than long-term investors. HFT firms make up the low margins with incredibly high volumes of trades, frequently numbering in the millions. It has been argued that a core incentive in much of the technological development behind high-frequency trading is essentially front running, in which the varying delays in the propagation of orders is taken advantage of by those who have earlier access to information. A substantial body of research argues that HFT and electronic trading pose new types of challenges to the financial system.[2][13] Algorithmic and high-frequency traders were both found to have contributed to volatility in the May 6, 2010 Flash Crash, when high-frequency liquidity providers rapidly withdrew from the market.[2][10][13][14][15] Several European countries have proposed curtailing or banning HFT due to concerns about volatility.[16] Other complaints against HFT include the argument that some HFT firms scrape profits from investors when index funds rebalance their portfolios. On September 24, 2013, it was revealed that some traders are under investigation for possible news leak and insider trading. Right after the Federal Reserve announced its newest decision, trades were registered in the Chicago futures market within two milliseconds. However, the news was released to the public in Washington D.C. at exactly 2:00 pm calibrated by atomic clock,[85] and takes seven milliseconds to reach Chicago at the speed of light.[86] Contrary to claims by high-frequency trader Virtu Financial,[87] anything faster is not physically possible. It was concluded the high-speed traders in question had to receive the news under embargo from proprietary feed servers in Chicago that were pre-loaded with the Fed's announcement. Advanced computerized trading platforms and market gateways are becoming standard tools of most types of traders, including high-frequency traders. Broker-dealers now compete on routing order flow directly, in the fastest and most efficient manner, to the line handler where it undergoes a strict set of risk filters before hitting the execution venue(s). Ultra-low latency direct market access (ULLDMA) is a hot topic amongst brokers and technology vendors such as Goldman Sachs, Credit Suisse, and UBS. Typically, ULLDMA systems can currently handle high amounts of volume and boast round-trip order execution speeds (from hitting "transmit order" to receiving an acknowledgment) of 10 milliseconds or less. Such performance is achieved with the use of hardware acceleration or even full-hardware processing of incoming market data, in association with high-speed communication protocols, such as 10 Gigabit Ethernet or PCI Express. More specifically, some companies provide full-hardware appliances based on FPGA technology to obtain sub-microsecond end-to-end market data processing. Buy side traders made efforts to curb predatory HFT strategies. Brad Katsuyama, co-founder of the IEX, led a team that implemented THOR, a securities order-management system that splits large orders into smaller sub-orders that arrive at the same time to all the exchanges through the use of intentional delays. This largely prevents information leakage in the propagation of orders that high-speed traders can take advantage of. http://en.wikipedia.org/wiki/High-frequency_trading
https://wn.com/Stock_Market_Insider_Trading_High_Frequency_Trading_Transactions_(2014)
A Closer Look at High-Frequency Trading

A Closer Look at High-Frequency Trading

  • Order:
  • Duration: 4:03
  • Updated: 02 Nov 2011
  • views: 40995
videos
This is the VOA Special English Economics Report, from http://voaspecialenglish.com | http://facebook.com/voalearningenglish Once, stocks were traded through the open outcry system. Today fast, interconnected computers have mostly replaced the traders shouting prices on the floors of stock exchanges. Joe Saluzzi is a head of equity trading at Themis Trading in New Jersey. "The equity market has changed. It's no longer what you see on TV, it's no longer guys with colored jackets running around the floor anymore. .... The equity market is a bunch of co-located computers strung together by a bunch of wires, everyone trying to race to zero. The speed of light is the goal."Computers can process stock trades in thousandths of a second. Andrew Haines of Gain Capital is an online broker. "A millisecond can mean millions of dollars to the success of your strategy. Having a one, two, three millisecond advantage over other traders may mean that you get into a trade at a preferable price." Andrew Haines says an estimated seventy percent of all stock trades are high-frequency trades made with complex computer models. Stocks may be held for only seconds. But fast trades are also blamed for big moves in stock prices.On May sixth, two thousand ten, a leading measure of American stocks briefly fell about nine percent. The Dow Jones Industrial Average then recovered much of those losses by the end of trading that day. The Securities and Exchange Commission ordered steps to prevent future "flash crashes" like that one. Joel Hasbrouck of New York University says those steps are working. "They're called circuit-breakers, and basically what they mean is that when a stock has moved by a large amount in a short period of time, there's a trading halt."Joe Saluzzi of Themis Trading says the main problem with high-speed trading is an unbalanced market. "The stock market used to be a predictor of the future economy. Now I think the stock market is a backwards predictor. ... It's forecasting the next microsecond move. It's not forecasting the next six months, because most of the volume is being dominated by guys who could care less what goes on in six months. So, how could you think the price is being set correctly?" But Joel Hasbrouck says high-speed trading can reduce sharp rises or drops in stock prices. "In normal circumstances, high-frequency traders act as market-makers. That means they stand by passively waiting to buy or sell from whoever comes into the market needing to trade. In that capacity, they actually help stabilize the market." For VOA Special English, I'm Alex Villarreal. (Adapted from a radio program broadcast 30Sep2011)
https://wn.com/A_Closer_Look_At_High_Frequency_Trading
High Frequency Trading - Robots vs Humans

High Frequency Trading - Robots vs Humans

  • Order:
  • Duration: 5:12
  • Updated: 09 May 2017
  • views: 1
videos
Most of us have never heard of high-frequency trading. Yet, many experts predict that the next financial crisis will be caused by this new practice, invented by Wall Street. Thousands of computers are interconnected, buying and selling thousands of market shares every micro-second, with no human control or regulation. We delve into a mad financing world dominated by machines, or rather, by elaborate algorithms carefully developed by mathematicians. The ultimate goal? To reach maximum profit within a few seconds. But sometimes, software breaks down and creates, what experts call a “flash crack,” an instantaneous market collapse. We investigate the job of speed traders and expose the often shocking methods they use to reach their goals. This is part of the acclaimed ’Cash Investigations - Underhand Tactics: Investigating Corporate Tactics’ series. Other episodes include ’Neuromarketing’, ‘Green’ marketing, ’Planned obsolescence’, ’Tax havens’, ’Sugar overload’, ’Toxic Labels’ and ’disease branding’. Like us on Facebook: https://www.facebook.com/JavaFilms/ Follow us on Twitter: https://twitter.com/java_films
https://wn.com/High_Frequency_Trading_Robots_Vs_Humans
Nanex ~ Order Routing Animation ~ 02-May-2013 ~ JNJ

Nanex ~ Order Routing Animation ~ 02-May-2013 ~ JNJ

  • Order:
  • Duration: 5:57
  • Updated: 03 May 2013
  • views: 322438
videos
We made another video that slows things down even more and shows 1/100th of a second of trading in Merck: http://www.youtube.com/watch?v=L5cZaIZ5bWc 1/2 second of trading activity in Johnson & Johnson (symbol JNJ) on May 2, 2013 This video was featured at Wired Business Conference (watch it now: http://fora.tv/2013/05/07/Nanex_CEO_Eric_Hunsader_Flash_Trading_Detective_Work) Follow us on twitter @nanexllc for Wall Street Breaking coverage. Set to lowest resolution for an "artistic rendering", or highest resolution for science. The animation tool that created this video was written in "C" using Windows GDI - simple lines, polygons and ellipses. We wrote it to explain to the SEC and CFTC (the regulators) how our markets work. We got the idea after realizing, in face to face meetings with them, they didn't understand market structure or the importance of latency and the consolidated feed. That was several years ago. We still aren't sure if they get it, or are just playing dumb. The bottom box (SIP) shows the National Best Bid and Offer. Watch how much it changes in the blink of an eye. Watch High Frequency Traders (HFT) at the millisecond level jam thousands of quotes in the stock of Johnson and Johnson (JNJ) through our financial networks on May 2, 2013. Video shows 1/2 second of time. If any of the connections are not running perfectly, High Frequency Traders can profit from the price discrepancies that result. There is no economic justification for this abusive behavior. Each box represents one exchange. The SIP (CQS in this case) is the box at 6 o'clock. It shows the National Best Bid/Offer. Watch how much it changes in a fraction of a second. The shapes represent quote changes which are the result of a change to the top of the book at each exchange. The time at the bottom of the screen is Eastern Time HH:MM:SS:mmm (mmm = millisecond). We slow time down so you can see what goes on at the millisecond level. A millisecond (ms) is 1/1000th of a second. Note how every exchange must process every quote from the others -- for proper trade through price protection. This complex web of technology must run flawlessly every millisecond of the trading day, or arbitrage (HFT profit) opportunities will appear. It is easy for HFTs to cause delays in one or more of the connections between each exchange. http://www.nanex.net/Research/IsNBBOIgnored.html
https://wn.com/Nanex_~_Order_Routing_Animation_~_02_May_2013_~_Jnj
What is a quant trader?

What is a quant trader?

  • Order:
  • Duration: 33:42
  • Updated: 02 Dec 2013
  • views: 74376
videos
http://www.onestepremoved.com/ Shaun Overton interviews Michael Halls-Moore, a quantitative developer. Mike jumped from postgraduate school straight into algorithmic trading, bringing all the academic expertise but having to figure out the real world of trading with other people's money. Mike talks about the differences between trading personal accounts and what the institutions look for in their trading strategies. http://youtu.be/Uw188vWQ2Hg
https://wn.com/What_Is_A_Quant_Trader
10 Seconds of Extreme Trading in Blackberry

10 Seconds of Extreme Trading in Blackberry

  • Order:
  • Duration: 3:34
  • Updated: 02 Oct 2013
  • views: 82407
videos
October 2, 2013 - Blackberry rallies from $7.60 to $8.00. Watch the deluge of quotes from Nasdaq (pink at 12 o'clock) overwhelm the system when the price ticks to the next level. Quote rates approach 40,000 per second on a 25 millisecond basis. More info in the description here: http://youtu.be/rB5jJuMP84E
https://wn.com/10_Seconds_Of_Extreme_Trading_In_Blackberry
NYSE Speed Bump Gets Thumbs Up from SEC

NYSE Speed Bump Gets Thumbs Up from SEC

  • Order:
  • Duration: 1:07
  • Updated: 17 May 2017
  • views: 90
videos
05/17/17 The SEC approved the introduction of a 'speed bump' on all trades on NYSE MKT. The electronic exchange (NYSE MKT) will be renamed NYSE American and bring a 350-microsecond delay for trading of the Big Board's sister exchange.
https://wn.com/Nyse_Speed_Bump_Gets_Thumbs_Up_From_Sec
Execute trades in microseconds

Execute trades in microseconds

  • Order:
  • Duration: 0:33
  • Updated: 13 Jan 2017
  • views: 3
videos
Buy and sell 500 symbols in 2 seconds
https://wn.com/Execute_Trades_In_Microseconds
Executes trades in microseconds

Executes trades in microseconds

  • Order:
  • Duration: 0:25
  • Updated: 13 Jan 2017
  • views: 4
videos
Executes 500 symbols in one second from frontend
https://wn.com/Executes_Trades_In_Microseconds
High Frequency Trading - Rabiolab

High Frequency Trading - Rabiolab

  • Order:
  • Duration: 21:57
  • Updated: 22 Feb 2013
  • views: 495
videos
A really interesting segment from the radio podcast Rabiolab. the Episode is titled 'speed' and this particular segment looks into the world of the stock exchange. In particular a practice that has recently become popular called High Frequency Trading. This is the same phenomenon that was blamed for the 2010 Flash Crash in which the market had the largest dip in decades. If you like this segment go to http://www.radiolab.org/ and donate to this amazing podcast.
https://wn.com/High_Frequency_Trading_Rabiolab
The Stock Market & the Economy: High-Frequency Trading and Wall Street Stock Traders (2013)

The Stock Market & the Economy: High-Frequency Trading and Wall Street Stock Traders (2013)

  • Order:
  • Duration: 55:32
  • Updated: 21 Aug 2013
  • views: 28802
videos
High-frequency trading (HFT) is the use of sophisticated technological tools and computer algorithms to rapidly trade securities. HFT uses proprietary trading strategies carried out by computers to move in and out of positions in seconds or fractions of a second. Firms focused on HFT rely on advanced computer systems, the processing speed of their trades and their access to the market. Many high-frequency traders provide liquidity and price discovery to the markets through market-making and arbitrage trading; and high-frequency traders also take liquidity to manage risk or lock in profits. As of 2009, studies suggested HFT firms accounted for 60-73% of all US equity trading volume, with that number falling to approximately 50% in 2012. High-frequency traders move in and out of short-term positions aiming to capture sometimes just a fraction of a cent in profit on every trade. HFT firms do not employ significant leverage, accumulate positions or hold their portfolios overnight;[8] they typically compete against other HFTs, rather than long-term investors. As a result, HFT has a potential Sharpe ratio (a measure of risk and reward) thousands of times higher than traditional buy-and-hold strategies. HFT may cause new types of serious risks to the financial system. Algorithmic and HFT were both found to have contributed to volatility in the May 6, 2010 Flash Crash, when high-frequency liquidity providers rapidly withdrew from the market. Several European countries have proposed curtailing or banning HFT due to concerns about volatility. Other complaints against HFT include the argument that some HFT firms scrape profits from investors when index funds rebalance their portfolios. Most retirement savings, such as private pension funds or 401(k) and individual retirement accounts in the US, are invested in mutual funds, the most popular of which are index funds which must periodically "rebalance" or adjust their portfolio to match the new prices and market capitalization of the underlying securities in the stock or other index that they track.[26][27] This allows algorithmic traders (80% of the trades of whom involve the top 20% most popular securities[26]) to anticipate and trade ahead of stock price movements caused by mutual fund rebalancing, making a profit on advance knowledge of the large institutional block orders.[15][28] This results in profits transferred from investors to algorithmic traders, estimated to be at least 21 to 28 basis points annually for S&P 500 index funds, and at least 38 to 77 basis points per year for Russell 2000 funds.[16] John Montgomery of Bridgeway Capital Management says that the resulting "poor investor returns" from trading ahead of mutual funds is "the elephant in the room" that "shockingly, people are not talking about." The largest high-frequency trading firms in the US include names like Getco LLC, Knight Capital Group, Jump Trading, and Citadel LLC. Advanced computerized trading platforms and market gateways are becoming standard tools of most types of traders, including high-frequency traders. Broker-dealers now compete on routing order flow directly, in the fastest and most efficient manner, to the line handler where it undergoes a strict set of Risk Filters before hitting the execution venue(s). Ultra Low Latency Direct Market Access (ULLDMA) is a hot topic amongst Brokers and Technology vendors such as Goldman Sachs, Credit Suisse, and UBS. Typically, ULLDMA systems can currently handle high amounts of volume and boast round-trip order execution speeds (from hitting "transmit order" to receiving an acknowledgement) of 10 milliseconds or less. Such performance is achieved with the use of hardware acceleration or even full-hardware processing of incoming market data, in association with high-speed communication protocols, such as 10 Gigabit Ethernet or PCI Express. More specifically, some companies provide full-hardware appliances based on FPGA technology to obtain sub-microsecond end-to-end market data processing. http://en.wikipedia.org/wiki/High-frequency_trading
https://wn.com/The_Stock_Market_The_Economy_High_Frequency_Trading_And_Wall_Street_Stock_Traders_(2013)
Joe Saluzzi on High-Frequency Trading: The Equity Market Is Now Controlled By The Machines

Joe Saluzzi on High-Frequency Trading: The Equity Market Is Now Controlled By The Machines

  • Order:
  • Duration: 45:28
  • Updated: 04 Nov 2011
  • views: 1447
videos
Joe Saluzzi, co-founder of Themis Trading LLC and outspoken exchange expert, is concerned with how high-frequency trading has brought the capital markets into uncharted - and dangerous - territory. "Things have changed," he cautions. With 50-70% of all trades being conducted by algorithms at micro-second time intervals, real human traders are increasingly challenged to understand how our markets actually work. "No longer do the technical patterns - that have lasted for years and years, and are written about all over - work anymore." In the following interview, Joe and Chris plunge into "dark pools" and other poorly-understood elements of our now-machine-dominated financial exchanges. The current system is fraught with risks of further "flash crash"-like disruptions, and at a fundmental level, feels a lot like sanctioned theft by the deep-pocketed institutions who can outspend on technology and speed. This is an important interview for anyone involved in trading (professionally or personally), as well as investors who want to know how today's markets truly operate. This podcast was originally posted on chrismartenson.com on February 4, 2011
https://wn.com/Joe_Saluzzi_On_High_Frequency_Trading_The_Equity_Market_Is_Now_Controlled_By_The_Machines
Thoughts on Intraday Trading and the Costs of Trading

Thoughts on Intraday Trading and the Costs of Trading

  • Order:
  • Duration: 7:22
  • Updated: 02 Nov 2014
  • views: 207
videos
Thoughts on Intraday Trading and the Costs of Trading. David Morrison Market Commentator and Trader comments. If you've found this video useful, please click the like button and share it with your friends and remember to SUBSCRIBE to remain up-to-date! A daily or intraday trader typically trades multiple times a day, and will be fighting against friction costs of brokers' commissions and slippage. So his system needs to be able to make more than those friction costs to provide you any ongoing profit to be available for compounding. Please comment. One of the interesting things that has happened in the last decade is that those friction costs (trading costs) have gone sharply down. II still recall spreads on Cable for instance at 6 ticks wide - how can you day trade that? Even in the retail market you can trade with very tight spreads which makes day and intraday trading attractive. The intraday timeframe is one of the most difficult timeframes to trade in as an independent trader, as it's where the most competition is. You have banks, marketmakers, brokerages, not to mention the proliferation of algorithmic bots, all trying to find an edge at the second or micro-second level, so there is very little left to be had for the "click-trader". The compeitition is out there but competition is also helpful as it provives liquidity to the market. Yes you got all those other players in the market and sometimes the liquidity does disappear which had led to instants of 'flash crashes'. If you look at the VIX; in particular equity volatility at the present, taking in consideration of all that is going on in the world, we have been in a bullish market all this time.
https://wn.com/Thoughts_On_Intraday_Trading_And_The_Costs_Of_Trading
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