- "Reg NMS, as it is often called, grew out of an effort nearly a decade ago to keep the U.S. abreast of financial centers such as London, Frankfurt and Hong Kong that were leaping ahead in embracing electronic systems. Securities and Exchange Commission officials worried that control of U.S. capital markets could begin to shift offshore if the U.S. didn't evolve."
- HFT - Brad's IEX ; WSJ article Orginally appeared on Jun 29 ,2013
"IEX also will forgo the so-called rebates that many exchanges pay firms that help provide buy and sell orders. The payments, typically about 25 to 30 cents per 100 shares, primarily benefit high-frequency trading firms that provide orders".
- HFT - Birth of an Electronic Trading Venue - TradeBot - WSJ article pub. on Dec 15 2006
- "In Mr. Cummings's world, the fundamentals of a stock are of little consequence. His firm favors large stocks, such as Microsoft, because it can trade in and out quickly. On one recent afternoon, a computer screen in Tradebot headquarters indicated that the firm accounted for more than 10% of that day's trading in Microsoft. On many days, Tradebot's trading totals account for as much as 5% of all Nasdaq trading, on par with trading levels at such giant firms as Fidelity Investments."
- HFT trading shop - Meet Getco HFT Trading King. [ Aug 2009]
- "Traders at Getco, a private company with fewer than 250 employees, use powerful computers and algorithms to engage in high-frequency trading. "
- "They are probably the biggest market maker in the U.S. stock market," said Justin Schack, a vice president at Rosenblatt Securities Inc. who closely tracks high-frequency trading. A market maker is a firm that always stands ready to buy or sell a stock.
- NYSE's Fast-Trade Hub Rises Up in New Jersey - WSJ.com [Jul 2009]
- MAHWAH, N.J. -- The future of the New York Stock Exchange is inside the red-brick building that is rising from the ground here about 35 miles from Wall Street.
- The exchange is building a similar facility outside London, which will cater to clients who want access to overseas markets. The combined price tag for the two data centers will be about $500 million, according to people familiar with the matter.
- The NYSE is seeking to stem a slide in market share from more than 80% in 2004 to about 40% this year, according to data from Equity Research Desk, a research company in Greenwich, Conn. Second-quarter earnings are expected to slide 40% from a year ago to 45 cents a share, according to a survey of analysts by Thomson Reuters.
- Fast Trader's new Edge is Light Speed - WSJ.com [Jun 2010]
- Critics call the practice the modern day equivalent of looking at share prices listed in tomorrow's newspaper stock tables today.
- "It is a rigged game," Sal Arnuk, co-founder of brokerage firm Themis Trading, said Wednesday at a Securities and Exchange Commission roundtable discussion in Washington, D.C., referring to the trading activity, which some call "latency arbitrage."
- HFT - Flash Crash - Most likely cause - Initial suspect
- Fund managers at Waddell & Reed Financial Inc. in Overland Park, Kan., moved to hedge their U.S. stock holdings, which total more than $7 billion, by betting that the S&P 500 would fall. Waddell decided on a large short sale of futures contracts known as E-minis, which mimic movement of the S&P 500. As Waddell's computers began parceling out the trade, other investors also were trying to hedge their portfolios, so trading volume in E-minis shot up to six times the usual volume.
- But liquidity, the ability to buy or sell easily, was drying up. Between about 2:35 and 2:45, the six "market-making" firms that were most active that afternoon in E-mini trading—they step in as buyers or sellers on many trades—cut back their trading. Some pulled out altogether.
- As a result, traders say, the big Waddell trade accelerated the sell-off. Waddell says it did not intend to "disrupt" the market.
- HFT - Flash Crash - Did Shutdowns Make Plunge Worse?
- "Some high-frequency traders, including Mr. Cummings at Tradebot, say their moves didn't accelerate declines. He says other firms selling large positions caused the market turmoil and that Tradebot would have been risking losses if it had continued trading. He says exchanges need to install better systems that automatically stop or slow trading when the market becomes overly chaotic."
- HFT - Flash Crash - Trading-Firm Breakdowns Accompanied Market Chaos - Wsj.com May 2010
- As the stock market spiraled out of control two weeks ago, two major firms that handle trades for retail brokerages suffered trading breakdowns.
- One, the big Chicago hedge-fund firm Citadel Investment Group, stopped taking orders for a number of securities, according to an internal email and people familiar with the matter. Shortly after the market plunged, Citadel asked clients, including discount brokers such as E*Trade Financial Corp. and TD Ameritrade Holding Corp., to route orders elsewhere.
- HFT - Haim Bodek Story - An insider narrative of HFT market participants - WSJ.com [Jun 29,2013]
- "Haim Bodek told the SEC what he had learned about order types. His sword was a gift from a friend who said he would need it in business.
- "HFT - charles schwab position on HFT [Apr 2014]
- "The integrity of the markets is at the heart of our economy. High-frequency trading undermines that integrity and causes the market to lose credibility and investors to lose trust. This hurts our economy and country. It is time to treat the cancer aggressively."
- "HFT- What Goldman Sachs President[@Apr 2014] (gary cohen) thinks about HFT ?[ Apr 2014 ]
- "Three powerful forces have been at work: technology, regulation and competition. The result has been narrower spreads, faster execution and lower overall explicit costs to trading stocks."
- HFT- What Mark Cuban's thinks about HFT ? [ Apr 2014]
- "The output of the algorithms, the This Then That creates the trade (again, this is a simplification — I'm open to better examples), which creates a profit of some relatively small amount. When you do this millions of times a day, that totals up to real money. IMHO, this is the definition of high-frequency trading. Taking advantage of an advantage in speed and algorithmic processing to jump in front of trades from slower market participants to create small, guaranteed wins millions of times a day. A high frequency of trades is required to make money. Therein lies the problem. This is where the game is rigged
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