Practical analysis for investment professionals
15 December 2011

Take 15: High-Frequency Trading, Flow Toxicity, and the Flash Crash

At the Asian Finance Association Conference in Macao SAR, China, Dr. Maureen O’Hara, an expert in market microstructure and trading, discusses high-frequency markets, algorithmic trading, flow toxicity, and differential access to price information in Asia, as well as the flash crash and market fragmentation.

This episode of the Take 15 Series was originally released on 29 September 2011.

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About the Author(s)
Samuel Lum, CFA

Samuel Lum, CFA, is director of Private Wealth and Capital Markets at CFA Institute. He focuses on wealth management and capital markets, mainly in an Asia- Pacific context. Lum's current research and development interests include investment policy, asset allocation, exchange-traded funds and products, indexing methodologies, family office and governance issues, alternative assets, and risk management. He has more than 20 years of professional experience in the investment industry, encompassing investment portfolio management at Hutchison Whampoa, a global conglomerate based in Hong Kong; wealth management in the trust division of the TD Bank Financial Group, covering the Asian markets; investment portfolio management, fund and treasury management, corporate finance, and capital markets research at the treasury division of the Ontario Hydro Corporation; and securities brokerage in an online financial services joint venture of subsidiaries of Credit Suisse and Hutchison Whampoa. Lum holds the CAIA, FRM, and TEP professional designations. He also holds an MBA degree. Topical Expertise: Portfolio Management · Private Wealth Management

1 thought on “Take 15: High-Frequency Trading, Flow Toxicity, and the Flash Crash”

  1. Another flash crash is, despite fragmentation, hugely unlikely. There is now an entire generation of traders having seen it once and standing ready to suck up stock the minute it starts dropping irrationally. In much the same way as terrorists will never again gain access to an airplane cockpit, because the model of taking control, landing it and demanding a ransom has been broken (by 9/11) and the customers (passengers) and pilots know there is no way they will allow terrorists to take control of the plane.

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