STORM OF INSIGHTS – High Frequency Trading: Too Fast To Fail? (Part 1)

portrait of NAVING SINGH SARAO, the accused trader
portrait of NAVING SINGH SARAO, the accused trader

Here is a link to my latest contribution to The Market Mogul, with a series of articles that will be tackling the High Frequency Trading issue.

Part 1, going from its early history, up to the most recent controversies, including the 2010 “Flash Crash”, a straightforward opinion about the allegedly guilty trader and a quick review of Michael Lewis’ Flash Boys.

Here is an extract:

In 1987, we stumble upon the very interesting case of Thomas Peterffy. The latter was an options trader with a background in software engineering, who one day decided to switch a cable from his Nasdaq terminal back to his computer, which resulted in a fully automated algorithmic trading system, able to receive quotes and execute trades without the need of human intervention. The story tells that a Nasdaq official that dropped by his office was astonished to see a mere Nasdaq terminal and a computer, instead of a whole team of traders.

Tell us your opinion about HFT, Subscribe & Stay tuned for Part 2 of this series which will explore the HFT universe in greater details, while once again focusing on the Good, Bad, and Ugly sides.

Follow up:

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Stay tuned dear Storm-Troopers !

(Yes, this is indeed the term we coined for our loyal readers… Oh and yes, we are Star Wars fans).



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