In our blog we told a story of development of own trade SmartX terminal, and today it will be a question of the cult terminal which traders around the world — Bloomberg use. And despite all its fabulosity, not everyone is happy with it. But whether something threatens leadership of this tool?
3 years agoОт переводчика: блоге технологиях, связанными с трейдингом на современных биржах. Материал, который мы предлагаем вашему вниманию сегодня, был опубликован на площадке Zero Hedge – ее авторы подчеркивают свою независимость от «ангажированных финансовых журналистов» и стремятся рассказывать о том, что, по их мнению, на самом деле происходит на финансовых рынках. В статье они решили рассказать о «темной стороне HFT» – по их мнению, именно алгоритмы высокочастотной торговли стоят за обвалом рынка казначейских облигаций США в прошлом году.
Мы сильно удивились, когда узнали, как некоторые пытаются интерпретировать сегодняшний [от 13 июля 2015 года – прим. перев.] долгожданный отчет, подготовленный совместно Министерством финансов, Федеральной резервной системой (ФРС), Комиссией по ценным бумагам (SEC) и Комиссией по торговле фьючерсами США (CFTC). Целью отчета была попытка «объяснить» мгновенное снижение доходности казначейских облигаций 15 октября 2014 года, когда, если помните, примерно в 9:34 утра наблюдался резкий скачок цен на казначейские облигации и снижение их доходности с 2,20% до 1,95%…
… а составители отчета постарались сделать все, чтобы отвлечь внимание читателей от высокочастотного (HFT) трейдинга.
Похожий случай: чуть ранее Wall Street Journal заявил о том, что «Власти США пришли к выводу, что небывалая волатильность цен на рынке казначейских облигаций США 15 октября 2014 года была вызвана «рядом факторов». При этом они указали на масштабные изменения в структуре рынков казначейских ценных бумаг, включая растущую роль высокочастотной торговли».
3 years agoNote of the translator:In the blog technologies, connected with trading at the modern exchanges. Today we present to yours the second part of adapted translation of article of the London financier and trader Brett Scott in which he in detail tells about the phenomenon of high-frequency trading (HFT). This material will help to understand better all pluses and the negative moments arising owing to activity of such high-frequency dealers. The first part is available according to the link.
You see only what you want to see.
To me in some sense all the same, "undermine" HFT algorithms activity of the markets or not. Partly it because I do not consider the markets as any sacred mechanism which works for the benefit of all mankind, and, therefore, cannot be profaned. I to the fact that the markets already long time are a subject of systematic abuse when those, who have more power, can use the act of an exchange (obviously, not having any relation to policy) for benefit extraction.
But give for a second it is representable that the market infrastructure also really possesses a certain mystic force which positively influences society. What then for this purpose does HFT trading? One of arguments of his supporters consists that HFT trading promotes growth of liquidity in the markets of different financial instruments. This statement is supplemented with the menacing news of what can occur if this liquidity falls. Low liquidity of the market will strongly be reflected in pension of your grandmother!
In our blog we repeatedly wrote about high-frequency or HFT trading. Some moments are not always clear to readers whether connected with this type of trade, for example, it is unambiguously harmful speculative phenomenon, or can exert also some positive impact on a financial system? Who in general is engaged in it and what strategy of trade allow them to earn?
In today's material we will try to give answers to these questions.
Note of the translator:In the blog technologies, connected with trading at the modern exchanges. Today we present to yours the first part of adapted translation of article of the London financier and trader Brett Scott in which he in detail tells about the phenomenon of high-frequency trading (HFT). This material will help to understand better all pluses and the negative moments arising owing to activity of such high-frequency dealers.
While you read this sentence, the algorithm for high-frequency trading (high-frequency trading, HFT) keeping in contact with stock exchange through trading infrastructure "with short delays", perhaps could carry out 1000 transactions.
I speak "perhaps" because it depends on what pause you do in places where commas are placed. If when reading you prefer to stop after each comma, then you give to algorithm chance to expose some more hundreds of orders.
I will try to clear a situation. It means that the computers located in a certain place which owns (or which rents) the company, can: 1) to get data access of stock exchange; 2) to process them by means of the coded system of consecutive operations (algorithm) and to make a decision on whether it is worth trading or not; 3) to send back on the exchange the message with the warrant for purchase/sale of shares of the company – for example, the companies on production of children's toys; 4) to wait until the order is performed and to receive confirmation; 5) to repeat all these steps, say, 250 times per second.
Frankly speaking, it is not absolutely exact digits too. Only the few know, how fast actually algorithmic engines perform trade operations. But even if they make 50 or even 10 transactions per second, it after all is improbable quickly.
3 years, 4 months agoNote of the translator: In ours of the blog on Habré, Giktayms and Megamozge we explain how the world of finance from the different points of view is arranged, to the same purpose serves our educational programs. Today we present to yours the interesting material explaining why finance seems to most of people very difficult subject.
Liza Pollack from FT Alphaville tries to answer such question: "Why we so easily manage to complicate the sphere of finance?" In her opinion, "Flynn's effect" which consists in gradual increase of level of human intelligence can serve as the answer. The area of finance, thus, becomes complicated eventually because financiers become rather smart that to complicate it.
Quite interesting hypothesis. But I do not think that it is right.
3 years, 4 months ago
Navinder Singh Sarao (Navinder Singh Sarao) can be extradited to the USA on the basis of statements that he helped to organize an instant collapse on the Wall Street in 2010. But whether he is guilty actually?
The New York stock exchange in day of a collapse of stock market of the USA, on May 6, 2010. Photo: Timothy Kleri/AFP/GettyImages
Really, whether it was worth worrying because of it? Judging by the name, "the instant collapse" the [English flash crash] which occurred on May 6, 2010 in stock market of the USA lasted long not so. Depreciation of securities for one trillion dollars was temporary. The quiet situation in the market – together with a usual stock value – renewed less than in half an hour. The most part of investors – millions of people with the long-term accumulation enclosed in the American companies – did not lose cent. The majority also did not notice a prompt collapse of the market: all were busy with the affairs.