has recently seen its moment in the spotlight, especially following the release of Michael Lewis's book "Flash Boys" detailing the practice.
But is high-frequency trading
ethical or strictly legal?
A long-term investor is invested before and after any high-frequency trading
. They are simply along for the ride, and lose absolutely nothing.
The public discussion, she added, also tends "to lump all high-frequency traders into a single nomenclature, but the reality is that it's much more complex than that--you have different high-frequency trading
strategies and different issues."
(HFT) uses automation to implement strategies that were previously performed by market specialists in exchanges.
consists of executing orders on financial markets electronically at very high speed (with speed counted in milliseconds).
Perez has spoken at Harvard Business School's Venture Capital & Private Equity Conference (Boston), High-Frequency Trading
Leaders Forum (New York, Chicago, Hong Kong, Sao Paulo, London, Singapore), MIT Sloan Investment Management Conference (Cambridge), High-Frequency Trading
Happy Hour (New York), Institutional Investor's Global Growth Markets Forum (London), Technical Analysis Society (Singapore), TradeTech Asia (Singapore), FIXGlobal Face2Face (Seoul), 2nd Private Equity Convention Russia, CIS & Eurasia (London), among other global forums.
(2) High-frequency trading
and sophisticated algorithms are a product of the emergence of the internet and quantitative analysis in the 1990s, where speed and accuracy were necessary for best execution of orders.
The Markets Committee at the Bank for International Settlements (BIS) has released a report entitled High-frequency trading
in the foreign exchange market .
Market participants remain doubtful that proposed MiFID II rules on high-frequency trading
(HFT) will ensure market safety, according to the results of the February poll on theTRADEnews.com.
French Economy Minister Christine Lagarde said a form of computerised trading known as high-frequency trading
(HFT) may need banning in some cases.
Among the Orc Trading solutions available to Alpes' customers, the ones designed for high-frequency trading
are expected to be in the greatest demand, the Swedish company said.
Despite the economic recession, high-frequency trading
has been considered by many to be the biggest "cash cow" on Wall Street and it is estimated that it generates approximately $15-$25 billion in revenue.
Moreover, there can be doubt whether real-time capacity could ever be achieved given the complexity of high-frequency trading
"flash trades" (execute or cancel on receipt) in which a high ratio of bids automatically self-destruct.