Posts Tagged ‘High Frequency’

Death Threats Against High-Frequency Trading Advocate Fade

Staunch proponent of high frequency trading Irene Aldridge says the e-mail death threats she received last August and September following a controversial TV interview have subsided.

“That was after my first interview with Saluzzi,” she said matter-of-factly in a phone interview late Thursday.

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CME gets bigger investment from Brazil exchange firm

(Reuters) — BM&FBovespa, the world’s fourth-largest exchange operator by market value, has agreed to raise its stake in CME Group Inc. for $620 million and develop new technologies, in its biggest bet to date on high frequency trading.

As part of the deal, BM&FBovespa will increase its stake in Chicago-based CME to 5 percent from 1.8 percent, the Brazilian company said Friday.

The companies also agreed to develop new technologies for high-speed trading platforms for stocks, derivatives, currencies, government and corporate bonds, where investors will be able to buy and sell securities in less than 1 millisecond.

BM&FBovespa said it will invest $175 million over 10 years in the new trading platform.

CME and BM&FBovespa also formed a “strategic partnership,” valid for 15 years, to jointly look for partnerships and investment opportunities in other exchange operators around the world.

SEC Vote Shows Scope of High-Frequency Trading Rules

High-frequency traders, whose lightning-fast stock and options tactics have been criticized by senators, are about to learn how far U.S. regulators may go to rein them in.

The Securities and Exchange Commission is poised to ask brokerage firms, traders and exchanges to weigh in on the practice, which describes a range of strategies that depend on high-speed executions, usually less than a millisecond.

SEC commissioners vote today on publishing a so-called concept release on high-frequency trading, dark pools and the structure of markets.

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High-frequency firms organizing lobby group

NEW YORK (Reuters) – About 25 high-frequency trading firms have discussed forming a lobbying group within the Futures Industry Association as they move to deal with growing scrutiny in Washington, the association told Reuters.

The firms have held a series of meetings in Chicago over the last two months, spurred by the prospect of a new transaction tax, commodity market position limits, and the possibility of a crackdown on high-frequency trading, the FIA said.

The group has a draft mission statement but no name, it said.

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New comprehensive book on High-Frequency Trading

A hands-on guide to the fast and ever-changing world of high-frequency, algorithmic trading

Financial markets are undergoing rapid innovation due to the continuing proliferation of computer power and algorithms.

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SEC Probing High – Frequency Strategies

NEW YORK (Reuters) – The U.S. Securities and Exchange Commission will likely seek public input on so-called high-frequency trading strategies, and whether traders using them gain any special advantages by placing fast computers next to exchanges.

High-frequency trading, which accounts for some 60 percent of U.S.

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SEC looks into effects of high-frequency trading

The Securities and Exchange Commission is looking into how high-frequency trading, which some estimate accounts for 50% or more of all equity trading in the U.S., affects markets, sources said. As lawmakers are scrutinizing the trading practice and other market developments, the SEC is not expected to publish a discussion paper on the strategies until December at the earliest.

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Goldman Sachs defends market practices in report to SEC

In a lengthy report to the Securities and Exchange Commission, Goldman Sachs Group defended high-frequency trading, dark pools, short-selling and other market strategies. “The investing community (especially retail) has benefited from the evolving market structure and industry competition,” Goldman said in the report. Lawmakers have criticized the practices and are looking into ways to increase their transparency.


Kaufman Praises SEC Proposed Ban On Flash Orders, But Seeks Broad Review

Yesterday, in a speech on the Senate floor, Sen. Ted Kaufman (D-DE) praised the SEC for its proposal to ban flash orders and for agreeing to undertake a broad review of high-tech trading practices.

But it’s clear from Kaufman’s remarks that he’s keeping the pressure on the SEC to carry out a much broader review of rapid technological developments that have transformed trading and led to computer-driven millisecond speeds.

“I’m hopeful that last week’s action was a true beginning,” Sen.

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Nasdaq OMX to roll out third equity exchange in 2010

Nasdaq OMX Group plans to use an exchange license it acquired when it bought the Philadelphia Stock Exchange in 2007 to launch a third equity-trading platform. Eric Noll, executive vice president at Nasdaq OMX, said the exchange is meant to give investors “additional choices that will help supplement their various trading strategies.” Pending approval from the Securities and Exchange Commission, the exchange is scheduled to launch in the second half of next year.


The company is working to diversify as upstarts BATS Exchange and Direct Edge now claim more than one-fifth of U.S. stock trading activity, chipping away at a business long dominated by Nasdaq OMX and NYSE Euronext (NYX).

Nasdaq OMX said the new platform will feature a price/size priority model that will allow customers to execute orders through any of Nasdaq’s platforms, as opposed to the price/time priority model offered on the Nasdaq Stock Market and Nasdaq OMX BX.

This model will incentivize traders to display larger order size, which appeals to institutions, high-frequency traders and retail investors alike, according to Brian Hyndman, head of transaction services for Nasdaq OMX.

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