Flash crash
James Rundle: Imperfect Solutions
Most Western exchanges have implemented safety measures to mitigate share-price swings, but others are beginning to experience the algorithmic troubles that brought trading firms to their knees in recent years. Kill switches and circuit breakers don’t…
January 2014: Do Algorithms Dream of Super-Fast Sheep?
While algorithms are far from sentient, Victor wonders what they would think about if they could.
Risk Management a Challenge When Algos Go Rogue
In an article published in May, Waters explored the problematic task of performing market surveillance in automated, high-frequency trading environments. Another challenging area for algorithmic trading is that of risk management, when questions of risk…
Algorithms, Arbitrage and Broken Things
Settling for a settled debate over high-frequency trading.
NYSE Retiring LRP Ahead of Limit Measures
The New York Stock Exchange has filed a plan to withdraw its Liquidity Replenishment Points program (LRP), a way of halting momentum in volatile stocks, with the US Securities and Exchange Commission (SEC).
Circuit Breakers Adequate for Flash-Crash Prevention
A recent report by London-based consultancy GreySpark Partners has found that circuit breakers and venue controls on algorithms should be sufficient measures to control aberrant behavior related to algorithmic trading, without a need for further…
James Rundle: That Golden Touch
The data jungle of modern trading may be confusing, says James, but the UK’s Financial Services Authority is certainly going out with a bang after slamming a complex market manipulation scheme, mirroring wider efforts among national cops to become tech…
Congressman Lobbies SEC for HFT Crackdown
Representative Ed Markey (D-Mass.) has written to the Securities and Exchange Commission (SEC), advising it to curb the practice of high-frequency trading (HFT).
MEP Says No to Minimum Resting Times
Kay Swinburne, member of the EU's Economic and Monetary Affairs Committee, believes minimum resting times for orders will not make it into the final drafting of the second Markets in Financial Instruments Directive (Mifid II).
ASIC Considers Kill Switch Introduction
The Australian Securities & Investments Commission (ASIC), plans to release a new set of rules for automated trading this week, chief among which will be the introduction of circuit breakers for brokers.
High-Frequency Trading: Handle with Care
Steve Dew-Jones unearths disquiet among market participants, following the European Parliament’s unanimous vote in favor of European Commission proposals to restrict the practice of high-frequency trading.
NSE Shifts Blame for India Flash Crash
Since India’s S&P CNX Nifty index dropped 900 points earlier this month, the country’s largest exchange hasn't disclosed any evaluations of its own mistakes. One technologist has a few suggestions.
Cass Questions Circuit Breakers in New Study
The Cass Business School at City University, London, has released an academic paper questioning the validity of measures put in place after the Flash Crash to ensure market stability.
The Curious Case of the Nifty
The Flash Crash on India’s exchange highlights the perils of instituting catchy mechanisms like circuit breakers without really analyzing what causes problems in the first place.
Knight Tech Glitch Leads Circuit Breakers to Kick In
About 150 stocks were possibly affected; five triggered circuit breakers.
Short Circuit: Does Flash Crash II Still Loom?
Two years after the Flash Crash, an event of similar proportions has yet to occur, despite doomsday prophecies to the contrary. Have measures such as circuit-breakers helped to safeguard the stability of modern capital markets, and more importantly, have…
Crashing Out
Ending the week with a bang.
Going to Bat for BATS
The botched IPO was embarrassing, but everyone makes mistakes
Market Survives Bats' Failed IPO; Will Bats?
While Bats failed IPO attempt-and subsequent mini-Flash Crash-led to numerous bad headlines, it doesn't have to be a death sentence for the usually tech-savvy exchange operator. Additionally, the event also shows that the industry has made strides since…
Large Trade Reporting Rules Promote Centralized Data Models
US securities regulators issued new rules July 26 that are expected to create more transparency in the markets but will generate more data management needs