high frequency trading
Another jurisdiction has found that high-frequency trading has a mostly neutral or positive impact on market quality.
Going beyond the traditional fundamentals of trading that are covered in academia, Larry Harris, CFA, explores the motivations and goals of the wide spectrum of traders, including profit-motivated traders, utilitarian traders, and the newest breed of traders — those resulting from the growth of electronic markets. Understanding other market participants’ motives allows traders to determine the most opportune time to trade.
The UK’s Financial Conduct Authority has released a report that aims to determine if high-frequency traders are anticipating order flow across markets. It finds …
Are markets rigged in favor of some investors now that dark pools and high-frequency trading (HFT) are ubiquitous? Ronan Ryan of IEX Group says that harnessing technological advances can help ameliorate market fragmentation and improve the functioning of markets for the benefit of the industry as a whole.
By far the biggest hurdle to handicapping or investing is recognizing when basic conditions have changed, be they rule changes, unexpected weather, personal issues of the professionals, or any number of other fluctuations. From an investment viewpoint, I believe 2015 experienced such cumulative changes that made many of our old approaches less useful.
Those were just some of the timely issues covered during a recent Twitter chat with Dennis Dick, CFA, proprietary trader and head of equity market structure at Bright Trading.
Conference takeaways: Market participants are mostly happy with modern market structure, quality; HFT isn’t a stressor, technology is; regulators should improve things at the margin, but do no harm.
Join CFA Institute capital markets policy analyst Sviatoslav Rosov, PhD, CFA, and Dennis Dick, CFA, proprietary trader and head of equity market structure at Bright Trading, for a live Twitter chat at 12 p.m. EST Monday, 7 December. The hashtag to follow along is #CFAHFT.
The broad conclusion of Australian report is that current levels of high frequency and dark trading do not constitute a concern and, as a result, regulators don’t foresee the need for further regulation.
Does modern market structure disadvantage investors and traditional market participants?