Addition Completes Celoxica’s Major Asset Class Coverage for its FPGA-based GMAC Market Data Feed Handler and GXA Order Entry Toolsread more...

London: Rapid Addition, the leading provider of trading technology solutions to buy- and sell-side financial institutions, announced that Saxo Bank, the international investment bank specialising in online trading and investment, is leveraging the C# version of RA–Cheetah™ as its FIX Protocol engine which remains the world's lowest latency and highest performing solution.read more...

In the low-latency world of high-frequency trading, some will lose, no matter how smart their systems and people. Can you catch up? Or should we slow them down?read more...

By Dr John Batesread more...

How the emergence of high frequency trading is altering the financial landscape as firms look to make money on the millisecond Over the last few decades, regulators globally have been promoting greater transparency and competition among the exchanges in their market. Such regulatory changes, along with the advent of highly sophisticated and fast computer technology have given rise to a new class of trading known as high frequency trading (HFT). Since its inception at the turn of the 21st...

Recently a Luddite mentality has worked its way into the debates centered around High Frequency Trading and the effect it might, or might not have, on the overall market.  Let’s understand something right away: Not all HFT is the same.  There needs to be a basic understanding of a strategy which now makes up an estimated 50 to 70 percent of overall exchange volume.  It becomes painfully obvious to those of us who are veterans of the industry that there is a basic...

Abstract: This article describes a simple test to assess the feasibility of high-frequency “pump-and-dump” arbitrage.  Using the tick data for Eurex Eurobund futures for 2009-2010 period, the article shows practical implementation of the test.  The Eurobund futures data does not support feasibility of highfrequency pump-and-dump.  The data instead shows that Eurobund futures are resilient to large trade sizes, a welcome feature for large institutional...

In the past decades technological advancement has had a profound impact on the way financial instruments are traded. These technological advancements have enabled investment firms to do hundreds of trades on several different markets faster than the blink of an eye. This evolution in the marketplace has become known under the umbrella of high frequency trading (HFT), and has become a topic for fierce discussions in the recent past. This discussion is fueled by controversies such as flash orders...

Abstract: We examine potential misspecification in four commonly used empirical market microstructure models by comparing the model-implied effective spreads with the corresponding observed effective spreads for the S&P500 exchange traded fund (SPY) for the period 1997-2009. While these models, on average, underestimate the effective bid-ask spread by only 7 percent during 1997-2006, that figure rises sharply to 41 percent during 2007-2009. We conjecture that the increase in magnitude of...

When people think of the stock market, they think of Wall Street. But the world of finance is changing, and high-powered computers and high frequency trading methods are quickly taking on a larger role. Is this safe, and who wins and who loses?