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The Trading Mesh

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Are Financial Markets Facing a Requirements Crisis?

April 23, 2014 by The Trading Mesh   Comments (0)           

 
And does the answer lie in Behaviour-Driven Development?
 
In this article, Mike O’Hara, in conversation with Dan North, Chris Matts, Liz Keogh, Alan Parkinson, Konstantin Kudryashov and David Evans, looks at how a number of firms in the Financial sector are turning to Behaviour-Driven Development (BDD) to ensure that complex requirements are identified, specified, communicated and continuously delivered.
 
 
Introduction
 
The Banking and Financial...

Jumbo frames - the elephant in the room for low latency

April 17, 2014 by Alastair Kane   Comments (0)           

When every microsecond shaved from a transaction confers a trading advantage, it makes sense to seek the lowest latency links between trader - human or algorithmic - and exchange. At Zayo, as a supplier of bandwidth infrastructure, this is something we are keenly aware of.  We spend months negotiating permissions for fibre routes that enable us to cut meters, and hence microseconds, from end to end latency.
 
That investment means that microseconds matter to us too; being able to...

Bringing Transparency and Scale to the Bullion Investment Market

April 10, 2014 by The Trading Mesh   Comments (0)           

In this article, Mike O’Hara – in conversation with Seamus Donoghue, CEO of Allocated Bullion Solutions and Peter Fredriksson, CEO of Baymarkets – looks at how the introduction of a new centralized trading platform in Singapore is bringing about greater transparency to the physical gold market in the region.
 
With the benchmark price for the world’s gold products set by the twice-daily London gold fixing and with the LBMA (London Bullion Market Association)...

Electronic Trading Agreements for Quants

April 7, 2014 by Mauro Viskovic             

By Mauro ViskovicHedge fund advisory firms that use quantitative-based investment strategies need to be mindful of various issues prior to executing an electronic trading agreement with a brokerage firm.  Such agreements, if not carefully reviewed and negotiated, can detrimentally affect quant firms.  A primary matter to address when negotiating an electronic trading agreement is the protection of the advisor’s proprietary trading codes.  Certain provisions in a...

Algo identifiers galore

April 7, 2014 by Regulation Matters (Fidessa)   Comments (0)           

By Christian VoigtWith the German algo ID mandatory from 1st April, I was prompted to scan the latest MiFID II texts in this regard. Member states must require exchanges to be able to identify the different algorithms used for generating orders (Art. 51.6) which, on a high level, sounds just like the German HFT Act.
To make things even more complex, MiFIR requires investment firms to identify in their transaction reports the “computer algorithms [.…] responsible...

Are Comms Rooms Fit for Purpose?

April 7, 2014 by Volta   Comments (0)           

Discussions at this year’s Trade Tech conference are set to debate a wide range of subjects important to capital markets.  In addition to the inevitable debates around high frequency trading (HFT) or transaction cost analysis (TCA), we can anticipate discussion about reference data, socially-powered algorithms and multi-asset execution and order management systems. 
A common thread will be sheer volume of data that each of these practices either uses or...

Maybe markets are unfair, but are they rigged?

April 2, 2014 by Fidessa   Comments (0)           

This article was originally published at the Fidessa blog, and is reproduced here with permission. By Steve Grob
The publication of Michael Lewis’s new book Flash Boys has reignited the whole HFT/dark pool debate (actually, maybe it’s never really gone away). The point people seem to continually miss in this debate is the distinction between “unfair” and “rigged”.
To me the term rigged implies some malevolent conspiracy between...

What’s giving high-frequency traders the jitters?

April 1, 2014 by Supermicro   Comments (0)           

As the technological arms race for speed breaks new ground, Dev Tyagi of Supermicro UK argues that performance jitter is the latest challenge algo traders need to overcome to unlock future profits
 
Since the flash crash of 2010, few issues have been debated as fiercely as high frequency trading (HFT). Does it increase liquidity and lower the cost of trading, or does it drive price volatility? More than four years on from the crash, the same debate rumbles on. But from a technology...

Addressing the Challenges of Post-G20 Interest Rate Hedging

March 24, 2014 by The Trading Mesh   Comments (0)           

In this article, Mike O’Hara – in conversation with Hirander Misra, Andrew Chart and Philip Simons - looks at how the new Constant Maturity Swap future from GMEX aims to help firms continue to hedge their interest rate exposures cost effectively in the post-G20 landscape.
 
Introduction
 
The reforms instigated by the G20 in the wake of the Global Financial Crisis have resulted in a number of structural changes to the world’s interest rate derivatives...

Transforming Quantitative Trading Applications With Persistent Flash Memory

March 20, 2014 by The Trading Mesh   Comments (0)           

In this article, Mike O’Hara looks at how the implementation of persistent flash memory is having a transformative effect on application performance at quantitative hedge funds, particularly where large amounts of data are analysed.
  
In the last fifteen years or so, the financial markets have seen a massive growth in the number of quantitative and systematic hedge funds, investment firms whose trading decisions are made solely on the basis of computational...