High-frequency trading
May 19th, 2010
We all know how big a share program trade take of the daily volume on NYSE and NASDAQ (Goldman Sachs stands for a huge part in itself). This article points out smaller firms off-Wall street that seems to be doing extremely well. At the same time that I’m fascinated by this topic I can’t help to feel that it really isn’t contributing to a fair and solid market where stocks are rewarded/punished for their real world performance. These guys say that they add liquidity to the market, but really, if you hold your positions for 11 seconds in average I think most would argue that the liquidity is artificial.
So, what I am trying to say is, I’m very jealous…
Interesting article there. What’s also interesting is whether or not the US will actually take steps to curb / ban electronic trading in this manner on the stock exchanges - especially since the “Flash Crash” a few weeks back.
If they can prove that this was actually due to abnormal orders being entered purely by algorithms, then it could well lead to new legislature regarding EA’s and Stock Market EA’s.
I used to work for Accenture, but to see a company that size have it’s shares reduced to 1 cent each is both funny and very scary - and I doubt that it has anything to do with Tiger Woods!
You’re right in the fact that it’s sort of wrong that robots these days have the ability to make or break a companies value - purely based on a few “if” statements - and not whether they have reported record profits or losses etc.
And yep - I want in! Wondered if TradeWorx offered manage accounts - but couldn’t find any info.. but then again I doubt if they would be accepting a £500 investment…