Algorithmic trading seems to have lead to a high-stakes “cat and mouse” game between large mutual funds and trading firms. Muitual fund managers say “algo” traders try to detect when mutual funds are placing buy orders and move quickly to buy shares in anticipation of selling them rapidly for a profit.
Thirty-eight percent buy-side money managers—typically long-term investors—say they have a more negative view of high-frequency trading than before the flash crash, according to a recent survey by Tabb Group, while 17 percent expressed positive views, the Wall Street Journal reports.
Algorithms are expected to account for about 60 percent of stock trading this year, up from 28 percent in 2005, according to Aite Group, a Boston firm that tracks electronic trading.
An escalating arms race has been the result, with players on both sides plowing money into ever-more-powerful technology to trade effectively. The obvious move to lower-latency communications is a direct result.
Algorithmic trading seems to have lead to a high-stakes “cat and mouse” game between large mutual funds and trading firms. Muitual fund managers say “algo” traders try to detect when mutual funds are placing buy orders and move quickly to buy shares in anticipation of selling them rapidly for a profit.
Thirty-eight percent buy-side money managers—typically long-term investors—say they have a more negative view of high-frequency trading than before the flash crash, according to a recent survey by Tabb Group, while 17 percent expressed positive views, the Wall Street Journal reports.
Algorithms are expected to account for about 60 percent of stock trading this year, up from 28 percent in 2005, according to Aite Group, a Boston firm that tracks electronic trading.
An escalating arms race has been the result, with players on both sides plowing money into ever-more-powerful technology to trade effectively. The obvious move to lower-latency communications is a direct result.
Tags: algorithmic trading, low latency
This entry was posted
on Wednesday, June 30th, 2010 at 9:48 am and is filed under News.
You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.
Write more, thats all I have to say. Literally, it seems as though you relied on the video to make your point. You definitely know what youre talking about, why throw away your intelligence on just posting videos to your weblog when you could be giving us something enlightening to read?
just below, are some totally unrelated websites to ours, however, they are definitely worth checking out
You actually make it seem so easy with your presentation but I find this topic to be really something that I feel I’d by no means understand. It seems too complex and very extensive for me. I’m having a look ahead to your next post, I will try to get the dangle of it!
Handy! Saves messing about with a logic probe, or worse a lead attached to an LED…
My dog is maddened when seeing these kind of films.
It is perfect time to make some plans for the future and it’s time to be happy. I’ve read this post and if I could I want to suggest you some interesting things or advice. Perhaps you could write next articles referring to this article. I desire to read even more things about it!
Hello There. I found your blog using msn. This is an extremely well written article. I will be sure to bookmark it and return to read more of your useful info. Thanks for the post. I will definitely return.
I appreciate you sharing this article. Really Great.
6370 hermes nyc 32 What is a sole proprietorship http://www.urocks.org/members/jiang987410 2012-04-08 15:23:45
I work as a volunteer for a charity that helps young people set up and run their own businesses by providing mentors, etc. We are just one of several.
Many of the young people need to learn how to sell their products and a market stall is an excellent way to interact with the public and learn about what they will and will not buy. I think that it would be very constructive if councils could set aside on day a week for these young people to test trade on a market. There would not be any charge for the stall. After 4 weeks, the young person would move on. That day could be widely publised and then known as a great place where future businesses started.
There are many excellent young people making innovative products let them have a showcase.
There are some attention-grabbing points in this article but I don’t know if I see all of them center to heart. There is some validity but I will take hold an opinion till I look into it further. Good article , thanks and we wish more! Added to FeedBurner as well.