Is HFT Ready to Take Over the World?

High-frequency trading may be poised to take over the world. While high-frequency traders in the United States and Europe increasingly are looking to expand into emerging markets, exchanges in places such as Brazil and India have been actively increasing their capacity in terms of lower latency and throughput. At the same time, regulators in these markets... Read more...

US Asks to Seal Courtroom to Guard Goldman Sachs Secrets

U.S. prosecutors asked a federal judge to seal the courtroom for part of the upcoming criminal trial of a former Goldman Sachs computer programmer, an effort to protect the secrecy of the bank’s high-frequency trading platform. * U.S. says Goldman could be harmed if details leaked * Defense seeks to prove no intent to harm Goldman NEW YORK –... Read more...

Inside the Flash Crash Report

The breathlessly awaited government report that promised to shore up public confidence by explaining why the stock market briefly plunged 998 points on May 6, with hundreds of stocks momentarily losing 60 per cent or more of their value, was released last Friday, October 1. Its neatly crafted finger-pointing to a small Kansas mutual fund firm which... Read more...

Secret Meeting to Plot End of High Frequency Trading

The SEC’s “definitive”(ly worthless) report on what happened on May 6th was a dud, and was nothing more than a distraction-based smear campaign against Waddell and Reed (an experiment in which we can only hope W&R participated involuntarily): a firm which did something that was completely in its right to do. But is this unexpected?... Read more...

US Lobby Group Formed For High-Frequency Traders

The Futures Industry Association on Wednesday said it formed a new lobby group to represent high-frequency trading firms that have come under heightened scrutiny for trading practices that may have contributed to Wall Street’s May 6 “flash crash.” The lobby, the Principal Traders Group (PTG), represents a who’s who of high-frequency... Read more...

Circuit Breaker Stops Trades of Citigroup

An experimental circuit breaker for stock markets that was put in place after last month’s so-called flash crash kicked in for the second time on Tuesday after an erroneous trade caused a sudden plunge in the price of Citigroup shares. Trading in the shares of Citigroup, one of the most heavily traded stocks in the United States, was paused for five... Read more...

Monsters in the Market

On the third floor of Citigroup’s Manhattan headquarters, at the far end of a trading floor overlooking the Hudson River, Young Kang, Citi’s global head of algorithmic products, leans over a terminal and monitors the progress of a canny and powerful beast named Dagger. Bred and trained in secret by Citi’s financial engineers, Dagger can stalk... Read more...