algorithmic trading

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A-papantoniou/Dreamstime

Our Brave New '''Markets'''

How HFT algorithms risk a massive sudden sell-off
Friday, July 28, 2017, 9:18 PM

One thing is clear: These aren’t your daddy’s markets anymore.

Why?  Because about 10 years ago the Rise of the Machines (aka high frequency trading algorithms) completely altered the terrain of what we call the ‘capital markets.’  » Read more

Blog

Sympathy For The Devil?

Trouble in paradise for the bankers
Friday, May 5, 2017, 3:32 PM

We're at the point where those at the apex of power are becoming increasingly desperate to maintain their unfair advantage.

And as the economic pie refuses to grow due to the twin overload of too much debt and declining net energy, these apex predators will turn on each other -- first to maintain their spoils, and then simply to survive. » Read more

Podcast

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Eric Hunsader: The Financial System is 'Absolutely, Positively Rigged'

And the abuses are getting worse, not better
Monday, April 18, 2016, 8:36 PM

Eric Hunsader, founder of Nanex, has been at the vanguard of warning about the dangers and the rampant fraud that the rise of high-frequency trading (HFT) algorithims have let loose in today's financial markets.

While he usually feels like a lone voice in a world happy to deceive itself, he was shocked to receive a $750,000 whistleblower award from the SEC for his efforts. He's been sadly less shocked to see that since the award was publicly announced, the abuses he reported have only become more extreme and frequent. » Read more

guest

Joe Saluzzi

Joe Saluzzi

Joseph Saluzzi is a partner, cofounder and co-head of the equity trading firm Themis Trading, a leading independent agency brokerage firm that trades equities for institutional money managers and hedge funds. He is also co-author of the book Broken Markets: How High Frequency Trading and Predatory Practices on Wall Street are Destroying Investor Confidence and Your Portfolio. Prior to Themis, Joe headed the team responsible for equity sales and trading for major institutional accounts at Instinet corporation for more than 9 years. He’s a frequent speaker on issues involving market access, algorithmic trading, other sell and buy side concerns.

Podcast

Joe Saluzzi: HFT Parasites are Killing the Market Host

Our exchanges are infested
Monday, July 2, 2012, 12:05 PM

Joe Saluzzi, expert on algorithmic trading -- also known as high-frequency trading, or HFT -- returns as a guest this week to explain how the players behind this machine-driven process act as parasites that are destroying our financial markets (and, increasingly, even themselves).

Since Joe first spoke with us last year, HFT firms have only increased in size and share of market activity. Here are some staggering statistics on how influential they have become:

  • HTFs make up between 50-70% of the volume seen across market exchanges today.
  • 2% of the traders on many exchanges (HFTs, specifically) represent 80% of the volume.
  • A single large HFT firm (referred to as a Direct Market Maker) can account for 10%+ of a market's volume on a given day
  • Large HFT firms make between $8 to $21 billion a year.
  • HFT trades occur in milliseconds (i.e., a small fraction of the time it takes your eye to blink).

With such scale, speed, and profitability, HFTs have turned the market away from being an efficient price-setting mechanism and perverted it into a casino where the clientele of human investors gets fleeced. » Read more