Each time there is a technology glitch in our modern markets, media reaches out to us, and we kind of tell them the same thing… it is a by-product of complexity, and glitches will continue to happen.
Yesterday, as you know well, NYSE experienced system issues that started very early in the day, ultimately resulting in a NYSE-only trading halt that lasted hours. While some have drawn comparisons with the August 2013 NASDAQ SIP outage, that outage involved a regulatory halt that shut trading down across all systems. By the way, this NYSE system outage follows on the heels of a (more…)
We read a lot of academic papers but seem to have missed this one from last April titled “High Frequency Trading and Market Stability” written by Dion Bongaerts and Mark Van Achter from the Rotterdam School of Management, Erasmus University in the Netherlands. The reason why we caught this paper now is because it was just awarded the Joseph de la Vega Prize 2015 for an outstanding research paper related to the securities markets in Europe. The paper tackles the increasingly popular subject of the how high frequency trading affects liquidity . We thought it would be worthwhile to take a closer look at this award winning (more…)