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The Trading Mesh

Candyce Edelen's Blog

Blockchain in Financial Services: Six Real-World Pilots

March 17, 2016 Comments (0)           

By Candyce EdelenThis article first appeared on the PropelGrowthBlog and is reproduced here with permission

Blockchain is a technology that creates a distributed ledger. Originally developed to facilitate Bitcoin transactions, many in financial services view it as a technology that could revolutionize transaction processing. It can represent a universal truth as it makes ledgers transparent, trustworthy and efficient.
According to Larry Tabb, “The interest in blockchain from the...

Making The Case For Automated FIX Certification

June 10, 2013 Comments (0)           

by Candyce Edelen
On October 5, 2012, a broker trading on India’s National Stock Exchange placed 59 erroneous orders, triggering a flash crash that wiped nearly 60 billion dollars from the value of some of that country’s largest public companies. It happened just 2 short months after another trading glitch cost Knight Capital to lose $440 million in just 45 minutes. These are just two in a series of trading incidents that have damaged the markets over the past two...

Why IT Buyers Don’t Trust Technology Vendors

May 28, 2013 Comments (0)           

by Candyce Edelen
Finding Technology for Market Surveillance
Last year, the CFTC (Commodities, Futures and Exchange Commission) had to find or build technology to surveil the swaps market. But they ran into a host of problems in trying to find the right technology solution. In essence, they felt that vendors were not being completely honest with them. A transcript of a CFTC Technology Advisory Council meeting contains some interesting commentary by Hugh Rooney, who is...

Technology Buying Process - What’s Really Happening

May 28, 2013 Comments (0)           

by Candyce Edelen
There has been a great deal written about the sales process, the customer buying cycle and how to align selling with the customer’s buying process. But most of what I’ve seen is still written from the seller’s point of view. What’s really going on behind closed doors when customers are making decisions?
We have interviewed countless senior technology and business executives in tier 1 and tier 2 sell side banks, brokerages and...

FBI Teams Up With SEC to Tackle Market Manipulation

March 8, 2013 Comments (0)           

by Candyce Edelen
Tuesday, the Financial Times reported that the FBI has joined the SEC in a probe of computer trading to prevent market manipulation caused by electronic trading strategies. They’re specifically going after algorithmic trading and high-frequency trading (HFT) strategies. The effort falls under the SEC’s new Quantitative Analytics Unit, which has been examining abuses related to HFT and dark pools.
Apparently, the team will look specifically at hedge...

GETCO Knight Deal Signals End to HFT Profitability

February 27, 2013 Comments (0)           

by Candyce Edelen
As you're probably aware, GETCO - one of the world's largest high frequency trading (HFT) prop shops, is buying Knight Capital. This came about after Knight nearly collapsed when a technical glitch on August 1, 2012 caused it to lose $440 million. While the acquisition is clearly opportunistic, since Knight was so crippled after its August losses, the move also signals GETCO's lack of confidence in the long term profitability of the HFT model, particularly in...

Six New FX Venues in the Past Four Weeks

June 21, 2012 Comments (0)           

By Candyce Edelen
If you wondered whether FX (foreign exchange trading) is an area of hot investment in financial technology, this should make it clear. In just the last four weeks, no less than six new FX trading platforms have been announced. All these new launches are focused on aggregating liquidity from multiple single dealer platforms (liquidity providers) in an effort to provide more transparency in this very fragmented market. Funny thing is, while they’re all trying to...

Cross-Asset Trading #005 (Part 2)

January 20, 2012 Comments (0)           

by Candyce Edelen

In this the second part of this two-part TrendSpotters installment, I continue my conversation with Harry Gozlan of smartTrade Technologies and Greg Wood of Credit Suisse on cross-asset trading. You can listen to part 2 the discussion by clicking below:
Cross-Asset Trading, Part 2
Podcast: Download (24.5MB)
You can also click here to read a transcript of the conversation.
During the second...

Cross-Asset Trading #005 (Part 1)

January 17, 2012 Comments (0)           

by Candyce Edelen

In this installment of the TrendSpotters Thought Leadership Series, we consider the evolution of cross-asset trading, how the industry is changing, and the drivers behind these changes. Joining me are Harry Gozlan, CEO and Founder of smartTrade, and Greg Wood, Futures Business Development Manager at Credit Suisse’s Advanced Execution Services.
Because of the complexity of this topic, we’ve segmented this episode into two parts. This...

Do HFTs Increase Liquidity or Just Volume?

July 17, 2011 Comments (0)           

by Candyce Edelen
On Monday, the TabbFORUM hosted “The Market Structure R[e]volution” conference. Congratulations to the Tabb team for an excellent program!
The first panel dove into issues around the flash crash and high frequency trading (HFT). Here are some of my thoughts on the panel discussion.
Do we need new obligations for the new breed of “market makers”?Last year’s flash crash magnified problems with US market structure. While many...