Computerized Trading: Maximizing Day Trading. - amazon.com
Corresponding author: Babson College, Finance Department, 231 Forest Street, Babson Park, MA 02457-0310; Phone: (781) 239-4402; Fax: (781) 239-5004; E-mail: [email protected] .We thank Lynda Borucki, Bonnie Van Ness and Robert Van Ness (the editors),

Corresponding author: Babson College, Finance Department, 231 Forest Street, Babson Park, MA 02457-0310; Phone: (781) 239-4402; Fax: (781) 239-5004; E-mail: [email protected] .

We thank Lynda Borucki, Bonnie Van Ness and Robert Van Ness (the editors), and an anonymous referee for helpful comments and support. The views expressed in this paper are strictly those of the authors and do not necessarily state or reflect the views of The Brattle Group, Inc.

The use of computers to execute trades, often with very low latency, has increased over time, resulting in a variety of computer algorithms executing electronically targeted trading strategies at high speed. We describe the evolution of increasingly fast automated trading over the past decade and some key features of its associated practices, strategies, and apparent profitability. We also survey and contrast several studies on the impacts of such high-speed trading on the performance of securities markets. Finally, we examine some of the regulatory questions surrounding the need, if any, for safeguards over the fairness and risks of high-speed, computerized trading.

Corresponding author: Babson College, Finance Department, 231 Forest Street, Babson Park, MA 02457-0310; Phone: (781) 239-4402; Fax: (781) 239-5004; E-mail: [email protected] .

We thank Lynda Borucki, Bonnie Van Ness and Robert Van Ness (the editors), and an anonymous referee for helpful comments and support. The views expressed in this paper are strictly those of the authors and do not necessarily state or reflect the views of The Brattle Group, Inc.

The use of computers to execute trades, often with very low latency, has increased over time, resulting in a variety of computer algorithms executing electronically targeted trading strategies at high speed. We describe the evolution of increasingly fast automated trading over the past decade and some key features of its associated practices, strategies, and apparent profitability. We also survey and contrast several studies on the impacts of such high-speed trading on the performance of securities markets. Finally, we examine some of the regulatory questions surrounding the need, if any, for safeguards over the fairness and risks of high-speed, computerized trading.

As the SEC debates high frequency trading’s impact on liquidity, one industry expert wants limits on the number of computerized trading systems.

While panelists on today’s SEC technology roundtable argued about whether high frequency trading adds or takes liquidity, Larry Tabb, CEO of TABB Group, is demanding more tangible measures by calling for a reduction in the number of computerized trading systems.

The panel was called to help the SEC address problems with high frequency trading, and Jamil Nazarali, head of execution services at Citadel Securities, a subsidiary of the Chicago financial firm headed by Ken Griffin, surprised the audience with his denial that high frequency traders, who use sophisticated computer systems to execute stock trades in milliseconds, are primarily engaged in exploiting small price differences in equities. He complained that that most press coverage of high frequency trading treats the practice as predatory or abusive.

Corresponding author: Babson College, Finance Department, 231 Forest Street, Babson Park, MA 02457-0310; Phone: (781) 239-4402; Fax: (781) 239-5004; E-mail: [email protected] .

We thank Lynda Borucki, Bonnie Van Ness and Robert Van Ness (the editors), and an anonymous referee for helpful comments and support. The views expressed in this paper are strictly those of the authors and do not necessarily state or reflect the views of The Brattle Group, Inc.

The use of computers to execute trades, often with very low latency, has increased over time, resulting in a variety of computer algorithms executing electronically targeted trading strategies at high speed. We describe the evolution of increasingly fast automated trading over the past decade and some key features of its associated practices, strategies, and apparent profitability. We also survey and contrast several studies on the impacts of such high-speed trading on the performance of securities markets. Finally, we examine some of the regulatory questions surrounding the need, if any, for safeguards over the fairness and risks of high-speed, computerized trading.

As the SEC debates high frequency trading’s impact on liquidity, one industry expert wants limits on the number of computerized trading systems.

While panelists on today’s SEC technology roundtable argued about whether high frequency trading adds or takes liquidity, Larry Tabb, CEO of TABB Group, is demanding more tangible measures by calling for a reduction in the number of computerized trading systems.

The panel was called to help the SEC address problems with high frequency trading, and Jamil Nazarali, head of execution services at Citadel Securities, a subsidiary of the Chicago financial firm headed by Ken Griffin, surprised the audience with his denial that high frequency traders, who use sophisticated computer systems to execute stock trades in milliseconds, are primarily engaged in exploiting small price differences in equities. He complained that that most press coverage of high frequency trading treats the practice as predatory or abusive.

Protect your cash flow and avoid risky customers by adding a credit report. This report will help you to assess the risk that a company represents to you or your business by identifying:

When you select this option we’ll monitor the company for 12 months and send you email alerts when important changes occur.

A current ASIC Extract is an official report that contains information about a company as recorded on the ASIC register. It includes: registered addresses, officeholders (directors/secretaries), shareholders and share structure. A Historical Extract provides a full history of previous addresses, officeholders and shareholders.

513Q31PDETL