March 21, 2010
It’s interesting that the debate around whether high frequency trading is a good thing or a bad thing for the markets and whether or not it benefits investors as a whole continues to rage in the blogosphere.
On one side, we have Cameron Smith, General Counsel of Quantlab Financial, who recently wrote a very articulate, well-reasoned article in defence of high frequency trading on the Traders Magazine website. You can read his article here.
On the other side of the debate,...
March 8, 2010
In a recent speech, Senator Ted Kaufman (D, DE) highlighted what he saw as the dangers of high frequency trading and outlined a number of points for regulators such as the SEC to consider.
It was a pretty well-informed speech. Sen Kaufman has obviously taken the time to speak with various people who seem to know what they are talking about, including representatives from trading firms, hedge funds, banks, brokers and of course regulators.
This is not the first time that Sen Kaufman...
March 4, 2010
As we’ve discussed in previous posts on the High Frequency Trading Review, The Securities and Exchange Commission (SEC) is currently looking closely at the structure of the US Equities markets and has produced a wide-reaching consultation paper, asking for feedback on various proposals.
One of the areas the SEC is focusing on is sub-penny trading, i.e. exchanges quoting share prices in increments of less than a cent (e.g. half a cent or a tenth of a percent). The initial...
March 3, 2010
Last week, I went along to the HiFreq Trade conference at the London Marriott Hotel in Grosvenor Square. As high frequency trading is a very hot topic in the financial markets at the moment, the conference was very well attended with standing room only for late attendees like me.
It was quite a gathering. The audience contained a number of real-life high frequency traders, from both the buy-side and the sell-side. Quantitative hedge fund specialists mingled with prop traders and high...