Why Institutional Investors Should Be Concerned About HFT     By Sal L. Arnuk and Joseph Saluzzi A Themis Trading LLC Mini White Paper   It is now generally understood that high frequency traders (HFTs) are dominating the equity market, generating as much as 70% of the volume. HFTs are computerized trading programs that make money two ways, in general. They offer bids in such a way so as to make tiny amounts of money from per share liquidity rebates provided by the exchanges. Or they make tiny per share long or short profits. While this might sound (more…)

We have talked extensively on our blog and in our white papers about the power of HFT and program trading.  We have noted that these trading strategies can move the market quickly  during the trading day.  We have always suspected that there have been certain major players that can dominate this space.    Now comes the case of the stolen proprietary trading code from Goldman Sachs.  http://www.bloomberg.com/apps/news?pid=20601087&sid=axYw_ykTBokE Most interesting in this Bloomberg article is the following statement by Assisitant U.S, Attorney Joseph Facciponti: “The bank has raised the possibility that there is a danger that somebody who knew how to use this program (more…)

17

Jun, 2009

29

May, 2009