By Jessica Meek | 22 May 2014 | Risk.net Operational Risk & Regulation
Technology getting out of control is the biggest concern with high-frequency trading (HFT), the US Financial Industry Regulatory Authority’s (Finra) chief information officer told delegates at the North American Financial Information Summit in New York on May 21, 2014.
By Cheyenne Hopkins, Bloomberg, Jun 9, 2014 6:02 PM ET
“…computerized and algorithmic traders who account for about half of U.S. stock trades. Traders like those highlighted by Michael Lewis in his book “Flash Boys” have been linked by critics to a May 2010 stock-market disruption…”
Bloomberg reporter Cheyenne Hopkins uses an unbiased and appropriate description, i.e. “a May 2010 stock-market disruption” in referring to the events of May 6, 2010, that became known as the “Flash Crash”. I sincerely thank Cheyenne Hopkins!
An unprecedented rapid decrease AND increase, by more than 5% in each direction, within 20 minute time period between 2:32 PM and 2:52 PM ET was experienced in the U.S. stock market, i.e. in E-mini S&P 500 stock index futures prices.
Futures Magazine June 6, 2014 FUTURES OP-ED By Matt Levine, Bloomberg
Matt Levine writes “I’ve said this before, but I really admire the way the Securities and Exchange Commission has responded to the recent uproar about high-frequency trading. A lesser regulator would have jumped on the bandwagon of HFT bashing, or even tried to get out ahead of it with its own anti-HFT branding.” To read more click on the article link above.
Futures Magazine June 6, 2014 By Daniel P. Collins
Ever since Michael Lewis’ book, “Flash Boys: A Wall Street Revolt” came out traders in general and high frequency traders in particular have been nervous about the regulatory response.
There was fear of a knee jerk response that could harm, or even end their business. So Securities and Exchange Commission Chair Mary Jo White’s comments this week at the Sandler O’Neill Global Exchange and Brokerage Conference were much anticipated. To read more click on the article link above.