High Frequency Trading

High Frequency Trading

Refers to computerized trading using proprietary algorithms. There are two types high frequency trading. Execution trading is when an order (often a large order) is executed via a computerized algorithm. The program is designed to get the best possible price. It may split the order into smaller pieces and execute at different times. The second type of high frequency trading is not executing a set order but looking for small trading opportunities in the market. It is estimated that 50 percent of stock trading volume in the U.S. is currently being driven by computer-backed high frequency trading. Also known as algo or algortihmic trading.
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A high frequency trading firm has selected Zayo Group Holdings, Inc.
MiFID II, which went into effect on January 3rd, requires firms to monitor communications and transactions for Market Abuse and sets a higher bar for High Frequency Trading, requiring such trading activity to be monitored at the microsecond level.
Though High Frequency Trading (HFT) sometimes has a potential to create an alpha - the financnial world's word for high-end returns - as managers exploit opportunities provided by volatility, it has, at the same time, the potential to disrupt the market - just as it did May 2010, when the 'Flash Crash' hit the market.
While Sebi is among the first regulators to have some kind of regulations in place on HFT ( high frequency trading), there is a need to make it stronger, he added.
At the heart of the lawsuit, filed by New York attorney general Eric Schneiderman, is the murky world of high frequency trading.
It is estimated that 70% of trading in the US and 40% in Europe involve this high frequency trading.
The Securities and Exchange Commission (SEC) is looking to enact new regulations to curb system-abusing high frequency trading (HFT) in U.S.
Summary: The Securities and Exchange Commission (SEC) is looking to enact new regulations to curb system-abusing high frequency trading (HFT) in U.S.
Las Vegas, NV, May 24, 2014 --(PR.com)-- A huge majority of respondents say high frequency trading on Wall Street should be outlawed, according to a new poll just released by Money Examiners.com, the innovative financial news website that follows the money for consumers and analyzes financial markets and issues.
"High frequency trading and the use of algorithms are an important and commonplace part of the markets nowadays, but in this case these techniques were deliberately designed to abuse the market, undermining its integrity.
The law will also ban some forms of commodity trading and activities such as high frequency trading.
The faster connectivity enables Strike to achieve the highest density and lowest port-to-port latency Ethernet performance, enabling the fastest response times for high frequency trading applications.

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