Economics, Finance

In Defense of HFT: “They’re good for price discovery.”

After all the negative press on HFT lately, at least one group of researchers, at the European Central Bank, has come out with a contrarian viewpoint. Their views were published in a working paper entitled “High Frequecy Trading and Price Discovery,” and here is their paper’s abstract: We examine empirically the role of high-frequency traders […]

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Finance

ZeroHedge: Everything You Need to Know About HFT

For those of you who are interested, ZeroHedge has an excellent “HFT 101” post. As the post notes, HFT has been around for quite a while in other, less extreme, forms: Ironically, while some form of HFT has been around for a long time, its true “potential” was first revealed in October 1987 with the […]

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Regulations

Bloomberg: “Flash Boys” Fallout Starts

Jim Brunsden has a note on Bloomberg today on the new European HFT regulations, inspired, he notes by Michael Lewis’ new book. An excerpt: European Union lawmakers are poised to approve some of the toughest restrictions in the world on high-frequency trading, the first crackdown in the aftermath of Michael Lewis’s latest book, “Flash Boys.” The […]

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Books, Finance, Regulations, Society

Recent Read: “Flash Boys” by Michael Lewis

Michael Lewis’ Flash Boys is a short (I read it on a Seattle-DC flight), well-written, exasperating and flawed look into the world of High Frequency Trading (HFT). HFT, for those not familiar with the acronym, is the term used to describe trading that has two principal features. First of all, HFT is executed primarily by computer algorithms […]

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Economics, Finance, Regulations, Technology

HFT Update: The Rise of the “Dark Pool”

A recent article by Scott Patterson on WSJ.com highlighted growing concern within the financial regulatory community about so-called “Dark Pool” exchanges. Dark pools are basically markets that match buyers and sellers of equities (typically though not necessarily in large blocks) anonymously and publish the trade results only after the fact. This WSJ Live video does […]

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Economics

The Bristol Pound and Other New/Old Ideas

BBC.com ran an interesting piece on September 18 by Dave Harvey on the recent creation of a new local currency in Bristol, England: the “Bristol Pound.” Notes Harvey: “The city of Bristol has launched its own currency, which cannot be used in Bath, never mind Berlin or Bombay. More than 350 firms in the city have […]

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