Flash Crash

Still Waiting on Real Time Regulation 3 Years after Flash Crash, May 6th, 2010

Posted on May 2, 2013. Filed under: Exchanges, Flash Crash, Regulations, Securities, Securities and Exchange Commission | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

The Speed Traders' Edgar Perez to CNBC's Oriel Morrison, Criticism of High-Frequency Trading Phenomenon Unfair

The Speed Traders’ Edgar Perez

On May 6th, 2010, the U.S. stock markets experienced an unusual decline (and an immediate upswing) that temporarily erased $1 trillion in market value (the Dow Jones Industrial Average plunged about 1000 points) and puzzled both actors and experts following the markets. Given the ongoing controversy about “flash orders” and its portrayed usage by high-frequency traders, this incident was quickly referred as the flash crash and just as quickly blame fell on the electronic trading industry. While it is true that some high-frequency trading firms stopped running their algorithms when the decline started (human traders stopped participating in the markets in Black Monday as well), some of them stayed in the market, and helped the markets recover just as quickly as the decline happened.

Fast forward two years and we find a twit from the Associated Press with supposedly breaking news that President Obama was injured due to explosions at the White House. That report made $136 billion in market value temporarily disappear, with the Dow Jones Industrial Average quickly dropping 150 points before swinging back.

Examples of dramatic swings can go all the way back to the origins of stock markets. We only need to take a look at Black Monday, October 19th, 1987, when the Dow Jones Industrial Average dropped by 508 points, 22.61%; by the end of October, stock markets in the United States had fallen by 22.68%, not showing any improvement for many weeks. Meanwhile, on May 6th, the Dow Jones had regained most of the drop only twenty minutes later.

Like major technology innovations in the past, computer trading was blamed for Black Monday back in 1987; as observed by economist Richard Roll though, program trading strategies were used primarily in the United States, and not in markets such as Australia and Hong Kong where the crisis started. Therefore, it is unsurprising by now that high-frequency trading has been blamed for the flash crash, the now called Twitter crash, and mini-flash crashes of certain stocks, commodities and currencies.

As Manoj Narang, CEO, Tradeworx, says in my book The Speed Traders, no matter what regulators do, there will be times when herd-like behavior among long-term investors will all be stampeding for the exits at the same time, and simply there won’t be enough high-frequency trading to cover the demand for liquidity. That is exactly what happened on May 6th, as described in painstaking detail in the CFTC/SEC report of September 30th, 2010; the report made clear that a mutual fund, identified by Reuters back in May 14 as Waddell & Reed Financial Inc., initiated a program to sell a total of 75,000 E-Mini contracts (valued at approximately $4.1 billion), certainly influenced by the pessimism in the markets due to street protests in Greece, among other reasons; the computer algorithm used to trade the position in the futures markets was set to target an execution rate set to 9% of the trading volume calculated over the previous minute, but without regard to price or time. Similarly, we will always experience technology and human errors. Dave Cummings, Chairman, Tradebot, would ask about the flash crash, “Who puts in a $4.1 billion order without a limit price?” That was the catalyst that initiated the flash crash. Knight Capital Group Inc.’s $440 million trading loss in August 1st, 2012, when the firm lost approximately $10 million per minute, is another recent example that comes to mind.

On March 7th, 2013, the U.S. Securities and Exchange Commission announced Regulation SCI (Systems Compliance and Integrity). As explained by Commissioner Luis A. Aguilar, the proposed rule would move beyond the current voluntary program and require entities to establish, maintain, and enforce written policies and procedures reasonably designed to ensure that its systems have adequate levels of capacity, integrity, resiliency, availability, and security to maintain the entity’s operational capability and promote the maintenance of fair and orderly markets, mandate participation in scheduled testing of the operation of the entity’s business continuity and disaster recovery plans, including backup systems, and coordinate such testing on an industry- or sector-wide basis with other entities, and finally make, keep, and preserve records relating to the matters covered by Regulation SCI, and provide them to Commission representatives upon request.

Electronic trading, like any other area of finance, should have sensible regulations imposed to promote sound trading practices and protect the average American investor from predatory behavior. If a market participant who does not use high-frequency trading believes that he or she cannot enter into fair transactions, then that individual will not invest in that market. But regulators could restore trust in the market without eliminating high-speed trading. They simply must be armed to analyze trading activity in real time.

In an area of finance predicated on speed, regulation must be as well. Real-time information would allow regulators to see everything that is occurring in the markets, no matter how quickly the order information is being posted and transactions are occurring. This would require significant commitments to invest in both human capital and information technology, but the investment is worthwhile: it is vital for regulators to level the playing field of electronic trading in general.

Real-time policing for potential malfeasance is the most efficient way to regulate high-frequency trading. Analysis of real-time data would provide for effective regulation of these trades. This in turn would provide peace of mind for market participants big and small.

Having spoken with professionals in the world’s most important financial centers, I can attest that America’s capital markets continue being the envy of the world, thanks to the innovation people like high-frequency traders, educated in the country’s top schools, bring to the markets. Let’s allow innovations like high-frequency trading to continue and regulators to police them accordingly, and not try to ban them, as vocal activists tried once with major innovations such as automobiles and derivatives.

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Is High-Frequency Trading the Root of our Problems? It is the Economy, Stupid!

Posted on February 21, 2013. Filed under: Conference, Debt Ceiling, Economy, Financial Crisis, Fiscal Cliff, Flash Crash, Securities and Exchange Commission | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

Edgar Perez, Author, 'The Speed Traders' and 'Knightmare in Wall Street'

Edgar Perez, Author, ‘The Speed Traders’ and ‘Knightmare in Wall Street’

Beyond the memories of the recent financial crisis and doubts about the safety and fairness of the equity markets, events such as the Flash Crash of May 2010, the hugely distressing Facebook NASDAQ initial public offering and trading malfunctions at Knight Capital and Nasdaq OMX were wrongly associated with high-frequency trading (HFT) and characterized as shocks to the psyche of average investors. The around $130 billion outflows from domestic equity mutual funds in 2012 led to Joe Saluzzi, co-head of trading at Themis Trading, to say as recently as of December 2012 that “all of those events are confidence-shattering events.”

Furthermore, U.S. congressman Ed Markey tried to persuade the SEC that high-frequency trading was driving investors off the electronic trading highway completely because it was eroding confidence in U.S. markets. Congressman Markey wrote that “sophisticated trading firms can make full use of light speed HFT algorithms, while the ordinary investor day-trading his 401k remains at more terrestrial speeds. There is a real risk that algorithmic trading is making investors hesitant to re-enter the equity markets because they fear that the entire game is rigged.” Ultimately, he proposed that HFT should be curtailed immediately.

Data from Trim Tabs Investment Research appeared to support Mr. Saluzzi and Congressman Markey’s concerns. Their data show outflows from U.S. equity mutual funds in 2008 hit a record $148 billion; in 2009, confidence appeared to be stabilizing as outflows from U.S. equity mutual funds totaled just $28 billion, only to grow again in 2010 to hit $81 billion, $132 billion in 2011 and last year totaled $130 billion. So what would they say now that the Washington-based Investment Company Institute has revealed that equity mutual funds have gathered $29.9 billion in January’s first three weeks, more than for any full month since 2006? Moreover, long-term funds, which exclude money-market vehicles, attracted $64.8 billion in the first three weeks of the month. The previous record was $52.6 billion for all of May 2009.

What was the catalyst of the change in trend? Was HFT suddenly disappearing from the equity markets? As we have suspected in the past, it was the health of the economy. The dysfunctional behavior of the leadership in Washington, leading to a crisis of significant proportions in December 2012, was holding market participants from making investment decisions; when Washington still managed to temporarily solve the fiscal cliff issue, allowing the government to remove its borrowing cap and removing the terrifying prospect of sovereign default, investors rushed into stocks (and bonds too), setting the stage for the biggest month on record for deposits into U.S. mutual funds.

We are looking at forces beyond the niche of algorithmic and high-frequency trading in action here. Signs of improvement in the U.S. economy and a rising stock market (that pushed the Dow Jones Industrial Average above 14,000 on February 1 for the first time since 2007) are now prompting Americans to step up their investments. Hiring climbed in January as well, providing further evidence that the U.S. labor market is making progress. As the economy overall makes progress, inflows will increase as more and more households and companies start to invest in the financial markets, creating a net impact in the real economy, and further reinforcing the performance of the markets. Once again, the phrase “it is the economy, stupid!” remains as valid as ever.

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Real Time HFT Regulation Imperative for Edgar Perez at CME Group’s Global Financial Leadership Conference in Naples Beach, FL

Posted on November 17, 2012. Filed under: Conference, Exchanges, Flash Crash, Practitioners, Regulations, Technology | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

Madeleine Albright, Edgar Perez and Condoleezza Rice at CME Group's Global Financial Leadership Conference 2012

Madeleine Albright, Edgar Perez and Condoleezza Rice @CMEGroup’s GFLC12

In an area of finance predicated on speed, regulation must be as well, said Edgar Perez, author of The Speed Traders, An Insider’s Look at the New High-Frequency Trading Phenomenon That is Transforming the Investing World (http://www.TheSpeedTraders.com), at CME Group’s Global Financial Leadership Conference (GFLC), Nov. 12-14, 2012, at the Ritz-Carlton Beach Resort in Naples, Fla. The GFLC is an exclusive event that brings together decision-makers from the world’s leading financial institutions to discuss emerging geopolitical trends, debate critical economic issues and provide perspectives on future developments in the financial marketplace.

At panel Evolving Capital Market Dynamics: Volatility, Liquidity and High Frequency Trading, moderated by Michael Mackenzie, U.S. Markets Editor, Financial Times, Perez was joined by Daniel Coleman, Chief Executive Officer, GETCO, Jeff Jennings, Global Head of Listed Derivatives, Credit Suisse, and Richard Prager, Global Head of Trading and Capital Markets, BlackRock. Perez advocated for real-time information that would allow regulators to see everything that is occurring in the markets, no matter how quickly the order information is being posted and transactions are occurring. This would require significant commitments to invest in both human capital and information technology, but the investment is worthwhile: it is vital for regulators to level the playing field of high-frequency trading, concluded Perez.

The Speed Traders: An Insider’s Look at the New High-Frequency Trading Phenomenon That is Transforming the Investing World

The Speed Traders @CMEGroup’s GFLC12

Keynote speakers for this year’s conference include Sir Richard Branson, Founder, Virgin Group, and Condoleezza Rice, U.S. Secretary of State (2005-2009). Additional featured speakers include Madeleine Albright, former U.S. Secretary of State; James Carville, Political Strategist; Richard Kauffman, Senior Advisor to the U.S. Secretary of Energy; Ted Koppel, award-winning journalist; John Lipsky, First Deputy Managing Director, IMF (2006-2011); Karl Rove, former U.S. Deputy Chief of Staff to President George W. Bush; and Jimmy Wales, Founder, Wikipedia, and 2012 Fred Arditti Innovation Award Recipient.

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The New York Times Reports Declining U.S. High-Frequency Trading

Posted on November 12, 2012. Filed under: Conference, Exchanges, Flash Crash, Securities, Securities and Exchange Commission, Technology | Tags: , , , , , , , , , , , , , , , |

Declining U.S. High-Frequency Trading

From The New York Times, once the hottest thing to hit Wall Street in years, high-speed or high-frequency trading — known as H.F.T. — is now struggling to make gains in today’s stock market.

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Why Should I Urgently Schedule The Speed Traders Workshop 2012 Vienna?

Posted on September 13, 2012. Filed under: Exchanges, Flash Crash, Regulations, Securities and Exchange Commission, Workshop | Tags: , , , , , , , , , , , , , , , , , , , , , , , , |

The Speed Traders Workshop 2012, How High Frequency Traders Leverage Profitable Strategies to Find Alpha in Equities, Options, Futures and FX

ECB’s Ewald Nowotny. Credit: Reuters/Heinz-Peter Bader

No other than European Central Bank policymaker Ewald Nowotny called today for a regulatory ban on high-frequency trading, saying the technique of using computer algorithms to generate multiple high-speed trades had no practical value.

Reading the note from Reuters made me wonder whether Mr. Nowotny had thought about the consequences of a potential ban, when the technique already has more than 50% participation of equities trading in the continent.

“With high-frequency trading there is nothing to be regulated, it is to be banned. There is no really demonstrable net advantage from this (form of trading),” he told a panel discussion at a regulatory conference.

Mr. Nowotny, who heads the Austrian National Bank, would certainly benefit from attending one of my workshops. While I only have New York, September 25, Chicago, October 9, Dubai, October 14, Jakarta, November 16, Shanghai, November 22, and London, December 12, in my calendar for the year, I am faced with the urgent need to take my slides to Austria and add some light where darkness seems to be reigning; at least, I might schedule a stop in the Kitzbühel Alps.

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速度與策略決定高頻交易成敗

Posted on August 24, 2012. Filed under: Book Review, Flash Crash, Strategies, Technology, Workshop | Tags: , , , , , , , , , , , , , , , , , , , , , |

The Speed Traders Workshop 2012, How High Frequency Traders Leverage Profitable Strategies to Find Alpha in Equities, Options, Futures and FX技術進步不僅將影響交易本身,而且最終會改變投資的方法

[ 在高頻交易中,如果要確保資本的有效使用,高頻交易員會希望交易價格最低的股票,這樣每筆交易的利潤保持不變但是利潤百分比就高了。這就是為什么股票的流動性和低價格成為高頻交易策略中重要的組成部分 ]

2008年金融危機以來,許多對沖基金紛紛倒閉,投資者們也謹慎地捂緊錢袋,然而,有一種交易模式卻在不斷擴張,以它為商業模式的基金也如雨後春筍,這就是高頻交易(High-Frequency Trading)。這種盈利模式的核心競爭力在哪裡,前景又如何?

近日,美國高頻交易專家、《交易快手:透視正在改變投資世界的新興高頻交易》作者埃德加﹒佩雷斯(Edgar Perez)接受第一財經日報《財商》記者專訪。他表示,實現毫秒或微秒交易的速度是高頻交易的核心競爭力。目前,在發達的市場如美國和歐洲,高頻交易已占到交易量的一半以上。而假以時日,中國有望成為世界上最大的高頻交易市場。

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The New York Times: Don’t Ban the Trades; Regulate Them in Real Time

Posted on August 6, 2012. Filed under: Exchanges, Flash Crash, Practitioners, Regulations, Securities and Exchange Commission, Technology | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

The New York Times: Don’t Ban the Trades; Regulate Them in Real TimeIn my latest piece in The New York Times, I argue that wrongdoing existed long before the advent of high-frequency trading, and it will always be a part of markets. High-frequency trading is simply a tool; it can be positive or negative for investors and markets. To maximize the benefit and minimize the downsides, regulators need to catch up with the technology.

High-frequency trading has been under a microscope since the infamous “flash crash” in 2010. Let’s remember, though: The market rebounded that day almost as fast as it fell, and regulators ultimately determined that the crash was initiated by human error. But many in the financial sector and in government were uncomfortable at the thought that high-frequency trading programs could vaporize huge amounts of equity in a matter of minutes.

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美高频交易专家: 速度与策略决定成败

Posted on July 29, 2012. Filed under: Book Review, Conference, Event Announcements, Flash Crash, Practitioners, Regulations, Strategies, Workshop | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , |

The Speed Traders, An Insider’s Look at the New High-Frequency Trading Phenomenon That is Transforming the Investing World2008年金融危机以来,许多对冲基金纷纷倒闭,投资者们也谨慎地捂紧钱袋,然而,有一种交易模式却在不断扩张,以它为商业模式的基金也如雨后春笋,这就是高频交易(High-Frequency Trading)。这种盈利模式的核心竞争力在哪里,前景又如何?

2008年金融危机以来,许多对冲基金纷纷倒闭,投资者们也谨慎地捂紧钱袋,然而,有一种交易模式却在不断扩张,以它为商业模式的基金也如雨后春笋,这就是高频交易(High-Frequency Trading)。这种盈利模式的核心竞争力在哪里,前景又如何?

近日,美国高频交易专家、《交易快手:透视正在改变投资世界的新兴高频交易》作者埃德加·佩雷斯(Edgar Perez)接受第一财经日报《财商》记者专访。他表示,实现毫秒或微秒交易的速度是高频交易的核心竞争力。目前,在发达的市场如美国和欧洲,高频交易已 占到交易量的一半以上。而假以时日,中国有望成为世界上最大的高频交易市场。

埃德加·佩雷斯小档案

“唯一成就大事的方法是做你热爱的事。如果你还没有发现它,就继续寻找,不要气馁。当你找到它的时候,你的心会让你知道。”埃德加·佩雷斯告诉记者,这是他的座右铭。

对于佩雷斯来说,金融领域是他热爱的事业。在获得哥伦比亚MBA学位后,他曾任花旗银行副总经理、麦肯锡公司的顾问。作为事业的高潮,他撰写了《交 易快手:透视正在改变投资世界的新兴高频交易》。该书的英语版本由麦格劳 – 希尔公司出版(2011年),今年,中国金融出版社(2012年)把它翻译成中文,目前,该书的印尼语和葡萄牙语版本正在翻译中。

《交易快手:透视正在改变投资世界的新兴高频交易》对高频交易进行了独到的分析。这到底是一种什么样的曾经“令人充满恐惧的技术”?它如何搞乱市 场?如何在两年前“闪电崩盘”中推波助澜?这本书告诉读者,媒体曾经渲染的股市“算牌”的现象已经改变。高频交易完全独立于“巴菲特式”的长期战略,它们 运作于完全不同的时间框架,并对长期投资组合产生的利润影响非常小。

佩雷斯对于高频交易的热爱并不止于写书。为了让更多的人了解这一金融市场的新趋势,他创立了交易快手工作室,并任课程主管,讲解高频率交易者如何利用有利可图的策略,来寻找股票、期权、期货和外汇中的阿尔法 。在此之前,他是纽约大学理工学院的兼职教授,教授算法交易和高频财务。

佩雷斯对中国等新兴经济国家有着浓厚的兴趣。2009年,他创立了致力于金融社交活动的黄金网络公司,并建立25000人的数据库。公司定期在纽约为金融人士举办针对中国等新兴经济体的聚会或者讲座,受到热烈欢迎,并被《纽约时报》等报道。他曾经多次接受中文媒体的采访,甚至在他Linkedin上的简历,也使用了中英双语。

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The Best High Frequency Trading Book Now Available in Mandarin, Courtesy of Chinese Financial Publishing House

Posted on July 9, 2012. Filed under: Book Review, Exchanges, Flash Crash, Operations, Practitioners, Securities | Tags: , , , , , , , , , , , , , , , , , , |

The Speed Traders, An Insider’s Look at the New High-Frequency Trading Phenomenon That is Transforming the Investing World

The Speed Traders

The Speed Traders, Edgar Perez’s ground breaking work on high frequency trading, is now available in Mandarin, Courtesy of Chinese Financial Publishing House.  Unlike other works about HFT, Perez’s book provides readers with fresh, candid insight from the industry’s top HFT players.

Praise for The Speed Traders:

“Edgar’s book is fantastic . . . I recommend it highly.”
—Bart Chilton, Commissioner, United States Commodity Futures Trading Commission (CFTC)

“I have interviewed the most successful high-frequency traders in New York and Chicago, but I have learned so much more by reading Perez’s book. He covers the most relevant topics we need to know today and tomorrow.”
—Mark Abeshouse, Chairman, Augustus Capital

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What is Hotter than Facebook’s IPO for High Frequency Traders in Warsaw, Poland, and Kiev, Ukraine

Posted on May 4, 2012. Filed under: Event Announcements, Exchanges, Flash Crash, Practitioners, Strategies | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

The Speed Traders Workshop 2012, How High Frequency Traders Leverage Profitable Strategies to Find Alpha in Equities, Options, Futures and FXAs reported by Bloomberg, Facebook Inc.’s $11.8 billion initial public offering will cement the status of 27-year-old Mark Zuckerberg as one of the world’s richest men and put his social network among the highest-valued companies in the U.S. Facebook is offering about 337.4 million shares for $28 to $35 each, according to a regulatory filing yesterday. At the upper end of that range, the co-founder’s stake would be $17.6 billion, making him richer than Microsoft Corp.’s Steve Ballmer and Russian steel billionaire Vladimir Lisin, who are both twice his age, according to the Bloomberg Billionaires Index.

Zuckerberg, who began the service for Harvard classmates as a 19-year-old in his dorm room, built Facebook into the most popular social-networking site in the world, topping 900 million users last quarter. Now he has to prove he has the leadership skills to deliver enough growth to justify the company’s valuation, said Paul Saffo, managing director at Discern Analytics in San Francisco.

That being said, investors and traders in Poland and Ukraine will be paying close attention to Edgar Perez’s The Speed Traders Workshop 2012, “How Algorithmic and High Frequency Traders Leverage Profitable Strategies to Find Alpha in Equities, Options, Futures and FX” (http://www.TheSpeedTradersWorkshop.com) on May 11 in Warsaw and May 18 in Kiev. Edgar Perez is widely regarded as the preeminent expert in the specialized area of high-frequency trading; he is the author of The Speed Traders, An Insider’s Look at the New High-Frequency Trading Phenomenon That is Transforming the Investing World (http://www.TheSpeedTraders.com), published by McGraw-Hill Inc. (2011).

The Speed Traders Workshop 2012 Warsaw and Kiev reveal how high-frequency trading players are succeeding in the global markets and driving the development of algorithmic trading at breakneck speeds from the U.S. and Europe to India, Singapore and Brazil.

Edgar Perez has been featured on CNBC Cash Flow (with Oriel Morrison), CNBC Squawk Box (with Geoff Cutmore), BNN Business Day (with Kim Parlee), TheStreet.com (with Gregg Greenberg), Channel NewsAsia Business Tonight and Cents & Sensibilities (with Lin Xue Ling), NHK World, iMoney Hong Kong, Hedge Fund Brief, The Wall Street Journal, The New York Times, Dallas Morning News, Valor Econômico, The Korea HeraldFIXGlobal Trading, The Korea Times, TODAY Online, Oriental Daily News and Business Times.

Mr. Perez has been engaged to present to the U.S. Securities and Exchange Commission, CFA Singapore, Hong Kong Securities Institute, Courant Institute of Mathematical Sciences at New York University and Pace University, among other public and private institutions. In addition, Mr. Perez has spoken at a number of global conferences, including Harvard Business School’s Venture Capital & Private Equity Conference (Boston), High-Frequency Trading Leaders Forum (New York, Chicago, London), MIT Sloan Investment Management Conference (Cambridge), Institutional Investor’s Global Growth Markets Forum (London), Technical Analysis Society (Singapore), TradeTech Asia (Singapore), FIXGlobal Face2Face (Seoul) and Private Equity Convention Russia, CIS & Eurasia (London).

Mr. Perez was a vice president at Citigroup, a senior consultant at IBM, and a consultant at McKinsey & Co. in New York City.  Mr. Perez has an undergraduate degree from Universidad Nacional de Ingeniería, Lima, Peru (1994), a Master of Administration from Universidad ESAN, Lima, Peru (1997) and a Master of Business Administration from Columbia Business School, New York, with a dual major in Finance and Management (2002). He belongs to the Beta Gamma Sigma honor society. Mr. Perez resides in the New York City area and is an accomplished salsa and hustle dancer.

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Edgar Perez, The Speed Traders Workshop 2012 Kuala Lumpur, Featured by BFM 89.9, Malaysia’s Top Business Station

Posted on April 10, 2012. Filed under: Event Announcements, Exchanges, Flash Crash, Practitioners, Securities and Exchange Commission, Strategies | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

The Speed Traders Workshop 2012, How High Frequency Traders Leverage Profitable Strategies to Find Alpha in Equities, Options, Futures and FX

Edgar Perez, The Speed Traders Workshop 2012

Edgar Perez, author of The Speed Traders, and presenter at upcoming The Speed Traders Workshop 2012 Kuala Lumpur: How High Frequency Traders Leverage Profitable Strategies to Find Alpha in Equities, Options, Futures and FX, April 12th, was recently featured by BFM 89.9, Malaysia’s top business station; the podcast can be downloaded at http://www.bfm.my/2012-04-09-speed-traders-edgar-perez.html and http://podcast.bfm.my/podcast/e?file=assets/files/Resource_centre/2012_04_09_Edgar_Speed.mp3&t=High-FrequencyTrading.

Trading of equities on Bursa will be a new ballgame once computer-driven ultra-high frequency trading is introduced, said Mr. Perez, author and former Citigroup vice president. He added that high-speed trading already makes up six per cent of trades on the Bursa derivatives market and the stock exchange operator was reported to be gearing up for the introduction of ultra-fast trading of equities.

“Perez, who is conducting a workshop on HFT in Kuala Lumpur on April 12, also said that in order to minimize the latency of the trading systems, co-location is an inherent part of HFT. ‘As speed traders try to reduce any latency, they will want to trade from computers hosted on the exchanges themselves,’ he said. While such fast trading might not seem to appeal to long-term investors who focus on company fundamentals, Perez said that those with a long investment horizon are adapting some of the techniques HF traders have pioneered.”

Mr. Perez is widely regarded as the preeminent speaker and networker in the specialized area of high-frequency trading. He is author of The Speed Traders, An Insider’s Look at the New High-Frequency Trading Phenomenon That is Transforming the Investing World, published by McGraw-Hill Inc. (2011) and currently being translated into Chinese and Portuguese, course director of The Speed Traders Workshop 2012, How High Frequency Traders Leverage Profitable Strategies to Find Alpha in Equities, Options, Futures and FX (Hong Kong, Sao Paulo, Seoul, and Kuala Lumpur).

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The Speed Traders Workshop 2012 Kuala Lumpur Featured by The Malaysian Insider

Posted on April 8, 2012. Filed under: Event Announcements, Exchanges, Flash Crash, Regulations, Securities, Strategies, Technology | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

The Speed Traders Workshop 2012 Kuala Lumpur: How High Frequency Traders Leverage Profitable Strategies to Find Alpha in Equities, Options, Futures and FX, with author Mr. Edgar Perez

The Speed Traders Workshop 2012 Kuala Lumpur

Edgar Perez, author of The Speed Traders, and presenter at upcoming The Speed Traders Workshop 2012 Kuala Lumpur: How High Frequency Traders Leverage Profitable Strategies to Find Alpha in Equities, Options, Futures and FX, April 12th, was recently featured by The Malaysian Insider, in their note “Get ready for super-fast trading on Bursa, says US author” (http://www.themalaysianinsider.com/business/article/get-ready-for-super-fast-trading-on-bursa-says-us-author).

Journalist Lee Wei Lian reports that trading of equities on Bursa will be a new ballgame once computer-driven ultra-high frequency trading is introduced, said Edgar Perez, author and former Citigroup vice president. He adds that high-speed trading already makes up six per cent of trades on the Bursa derivatives market and the stock exchange operator is reported to be gearing up for the introduction of ultra-fast trading of equities.

“Perez, who is conducting a workshop on HFT in Kuala Lumpur on April 12, also said that in order to minimize the latency of the trading systems, co-location is an inherent part of HFT. ‘As speed traders try to reduce any latency, they will want to trade from computers hosted on the exchanges themselves,’ he said. While such fast trading might not seem to appeal to long-term investors who focus on company fundamentals, Perez said that those with a long investment horizon are adapting some of the techniques HF traders have pioneered.”

Mr. Perez has been engaged to present to the U.S. Securities and Exchange Commission, CFA Singapore, Hong Kong Securities Institute, Courant Institute of Mathematical Sciences at New York University and Pace University, among other institutions. In addition, Mr. 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.

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The Speed Traders Workshop 2012 in Seoul, Kuala Lumpur and a Financial Center Near You

Posted on March 23, 2012. Filed under: Event Announcements, Flash Crash, Practitioners, Strategies, Technology | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

 

The Speed Traders Workshop 2012, How High Frequency Traders Leverage Profitable Strategies to Find Alpha in Equities, Options, Futures and FX

Edgar Perez, The Speed Traders Workshop 2012

High-frequency traders have been called many things, from masters of the universe and market pioneers to exploiters, computer geeks, and even predators. Everyone in the business of investing has an opinion of speed traders, but how many really understand how they operate? The shadow people of the investing world, today’s high-frequency traders have decidedly kept a low profile, until The Speed Traders Workshop 2012: How High Frequency Traders Leverage Profitable Strategies to Find Alpha in Equities, Options, Futures and FX. Mr. Edgar Perez, course director, will bring his well-attended workshops to Seoul, South Korea, March 28, and Kuala Lumpur, Malaysia, April 12.

The Speed Traders Workshop 2012 opens the door to the secretive world of high-frequency trading, the most controversial form of investing today; in the name of protecting the algorithms they have spent so much time perfecting, speed traders almost never talk to the press and disclose as little as possible about how they operate. This workshop, led by Mr. Perez, author of The Speed Traders, An Insider’s Look at the New High-Frequency Trading Phenomenon That is Transforming the Investing World, reveals how high-frequency trading players are succeeding in the global markets and driving the development of algorithmic trading at breakneck speeds from the U.S. and Europe to India, Singapore and Brazil.

The Speed Traders Workshop 2012 in Seoul and Kuala Lumpur kicks off a series of presentations in the world’s most important financial centers: Doha, Qatar, April 18, Warsaw, Poland, May 11; Kiev, Ukraine, May 18; Singapore, May 26; Beijing, China, May 30; Shanghai, China, June 6; Jakarta, Indonesia, June 13; Mexico City, Mexico, July 27; Hong Kong, August 4, and Moscow, Russia, August 10.

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Edgar Perez, The Speed Traders, to Present at Pace University’s Lubin Graduate Society

Posted on March 18, 2012. Filed under: Event Announcements, Flash Crash, Strategies, Technology | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

The Speed Traders Workshop 2012, How High Frequency Traders Leverage Profitable Strategies to Find Alpha in Equities, Options, Futures and FXMr. Edgar Perez, presenter of The Speed Traders Workshop 2012, “How High Frequency Traders Leverage Profitable Strategies to Find Alpha in Equities, Options, Futures and FX” (http://www.TheSpeedTradersWorkshop.com), will present at Pace University’s Lubin Graduate Society, March 19, 2012, on How Traders Profit From High Speed Trading.

For more than 100 years, Pace University has been preparing students to become leaders in their fields by providing an education that combines exceptional academics with professional experience and the New York advantage. Pace has three campuses, in New York City, Westchester, and White Plains. A private metropolitan university, Pace enrolls approximately 13,500 students in bachelor’s, master’s, and doctoral programs in the Dyson College of Arts and Sciences, Lienhard School of Nursing, Lubin School of Business, School of Education, Seidenberg School of Computer Science and Information Systems, and School of Law. The Lubin Graduate Society’s (LGS) mission is to provide a forum that promotes learning leadership; fosters career advancement and professional equity; invokes innovation, diversity and creativity; and builds friendships, networks and togetherness among graduate students.

Mr. Perez is widely regarded as the preeminent speaker and networker in the specialized area of high-frequency trading. He is author of The Speed Traders, An Insider’s Look at the New High-Frequency Trading Phenomenon That is Transforming the Investing World, published by McGraw-Hill Inc. (2011) and currently being translated into Chinese and Portuguese, course director of The Speed Traders Workshop 2012, How High Frequency Traders Leverage Profitable Strategies to Find Alpha in Equities, Options, Futures and FX (Hong Kong, Sao Paulo, Seoul, and Kuala Lumpur), and founder of Golden Networking.

Mr. Perez has been featured on CNBC Cash Flow (with Oriel Morrison), CNBC Squawk Box (with Geoff Cutmore), BNN Business Day (with Kim Parlee), TheStreet.com (with Gregg Greenberg), Channel NewsAsia Business Tonight and Cents & Sensibilities (with Lin Xue Ling), NHK World, iMoney Hong Kong, Hedge Fund Brief, The Wall Street Journal, The New York Times, Dallas Morning News, Valor Econômico, FIXGlobal Trading, TODAY Online, Oriental Daily News and Business Times.

Mr. Perez has been engaged to present to the U.S. Securities and Exchange Commission, CFA Singapore, Hong Kong Securities Institute, Courant Institute of Mathematical Sciences at New York University and Pace University, among other institutions. In addition, Mr. 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.

The Speed Traders Workshop 2012, reveals how high-frequency trading players are succeeding in the global markets and driving the development of algorithmic trading at breakneck speeds from the U.S. and Europe to India, Singapore and Brazil. Upcoming dates for The Speed Traders Workshop 2012 include Seoul, March 28, Kuala Lumpur, April 11, Doha, April 18, Warsaw, May 11, Kiev, May 18, Singapore, May 26, Beijing, May 30, Shanghai, June 6, Jakarta, June 13, Mexico City, July 27, Hong Kong, August 4, and Moscow, August 10.

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Edgar Perez, The Speed Traders, at High Frequency Trading Panel, MIT Sloan Investment Management Conference

Posted on March 8, 2012. Filed under: Event Announcements, Exchanges, Flash Crash, Securities, Strategies, Technology | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

The Speed Traders Workshop 2012, How High Frequency Traders Leverage Profitable Strategies to Find Alpha in Equities, Options, Futures and FX

MIT Sloan Investment Management Conference

Mr. Edgar Perez, author of The Speed Traders, An Insider’s Look at the New High-Frequency Trading Phenomenon That is Transforming the Investing World (http://www.TheSpeedTraders.com), and presenter of The Speed Traders Workshop 2012, “How High Frequency Traders Leverage Profitable Strategies to Find Alpha in Equities, Options, Futures and FX” (http://www.TheSpeedTradersWorkshop.com), will participate at the High Frequency Trading panel at upcoming Seventh Annual MIT Sloan Investment Management Conference (http://mitsloaninvestment.com/conference.html), Friday, March 9, 2012, The Charles Hotel, Cambridge, Massachusetts.

This year’s theme is “Fundamental and Quantitative Strategies for Turbulent Markets.”  Conference attendees and investment professionals from across the globe will discuss strategies for dealing with the most critical issues facing the markets today. The distinguished keynote speakers and expert panelists will share their views on key trends and developments in their asset classes and investment processes. Keynote speakers for the Seventh Annual MIT Sloan Investment Management Conference include Congressman Barney Frank, Massachusetts Representative & Ranking Member of the House Financial Services Committee, Donald Sussman, Founder and Chairman, Paloma Partners LLC, Ron O’Hanley, President of Asset Management and Corporate Services, Fidelity Investments, and Professors Roberto Rigobon and Alberto Cavallo, Professors of Applied Economics and Founders of the Billion Prices Project, MIT Sloan.

Mr. Perez is widely regarded as the preeminent speaker in the specialized areas of high-frequency trading. He is author of The Speed Traders, An Insider’s Look at the New High-Frequency Trading Phenomenon That is Transforming the Investing World, published by McGraw-Hill Inc., the most comprehensive, revealing work available on the most important development in trading in generations. High-frequency trading will no doubt play an ever larger role as computer technology advances and the global exchanges embrace fast electronic access. The Speed Traders explains everything there is to know about how today’s high-frequency tradersmake millions—one cent at a time.

The Speed Traders Workshop 2012, reveals how high-frequency trading players are succeeding in the global markets and driving the development of algorithmic trading at breakneck speeds from the U.S. and Europe to India, Singapore and Brazil. Upcoming dates for The Speed Traders Workshop 2012 include Seoul, March 28, Kuala Lumpur, April 11, Doha, April 18, Warsaw, May 11, Kiev, May 18, Singapore, May 26, Beijing, May 30, Shanghai, June 6, Jakarta, June 13, Mexico City, July 27, Hong Kong, August 4, and Moscow, August 10.

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Edgar Perez, The Speed Traders Workshop 2012 Sao Paulo, Quoted by CNBC on Can ‘Trading on Tweets’ Really Make Money?

Posted on January 24, 2012. Filed under: Exchanges, Flash Crash, Practitioners, Strategies, Technology | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

Edgar Perez, Adjunct Professor at the Polytechnic Institute of New York University and presenter at The Speed Traders Workshop 2012 Sao Paulo: How High Frequency Traders Leverage Profitable Strategies to Find Alpha in Equities, Options, Futures and FX

Edgar Perez, Adjunct Professor at the Polytechnic Institute of New York University

Edgar Perez, Adjunct Professor at the Polytechnic Institute of New York University and presenter at The Speed Traders Workshop 2012 Sao Paulo: How High Frequency Traders Leverage Profitable Strategies to Find Alpha in Equities, Options, Futures and FX, February 8th, BM&FBovespa, was quoted by CNBC.com on the note “Can ‘Trading on Tweets’ Really Make Money?“.

CNBC’s Antonya Allen pointed out that social media websites like Twitter and Facebook have become increasingly important to high frequency traders looking to anticipate market moves before they happen; however, she asked, could they eventually become as significant as traditional business news providers in the world of high speed trading?

Edgar Perez, author of The Speed Traders: An Insider’s Look at the New High-Frequency Trading Phenomenon That Is Transforming the Investing World, said he has not come across a trader who had made money from information supplied on social networking sites. In his book, Edgar Perez follows six high speed traders and examines how ultra fast trading could develop in the future.

“I would be very interested in seeing cases where people actually made money using information from Twitter. Remember there’s a lag there of time and with high frequency trading you want to make sure you connect directly and don’t have any third party providers for information,” Perez explained.

Mr. Perez is widely regarded as the preeminent speaker and networker in the specialized area of high-frequency trading. He has been featured on CNBC Cash Flow (with Oriel Morrison), CNBC Squawk Box (with Geoff Cutmore), BNN Business Day (with Kim Parlee), TheStreet.com (with Gregg Greenberg), Channel NewsAsia Asia Business Tonight and Cents & Sensibilities (with Lin Xue Ling), NHK World, iMoney Hong Kong, Hedge Fund Brief, The Wall Street Journal, The New York Times, Dallas Morning News, Los Angeles Times, TODAY Online, Oriental Daily News and Business Times. He has been engaged as speaker at Harvard Business School’s 17th Annual Venture Capital & Private Equity Conference, High-Frequency Trading Leaders Forum 2011 (New York, Chicago, Hong Kong, Sao Paulo, Singapore), CFA Singapore, Hong Kong Securities Institute, Courant Institute of Mathematical Sciences at New York University (New York), Global Growth Markets Forum (London), Technical Analysis Society (Singapore), TradeTech Asia (Singapore), FIXGlobal Face2Face (Seoul), and 2nd Private Equity Convention Russia, CIS & Eurasia (London), among other global forums.

The Speed Traders Workshop 2012 Sao Paulo will reveal how high-frequency trading players are succeeding in the global markets and driving the development of algorithmic trading at breakneck speeds from the U.S. and Europe to India, Singapore and Brazil. The Speed Traders Workshop 2012 Sao Paulo kicks off a series of presentations in the world’s most important financial centers: Dubai, January 25; Seoul, South Korea, March 28; Kuala Lumpur, Malaysia, April 11; Warsaw, Poland, May 11; Kiev, Ukraine, May 18; Singapore, May 26; Shanghai, China, June 6; Jakarta, Indonesia, June 13; Mexico City, Mexico, July 27; Hong Kong, August 4, and Moscow, Russia, August 10.

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High Frequency Trading in Brazil, Mirage or Miracle? Find out at The Speed Traders Workshop 2012 Sao Paulo, February 8th

Posted on January 20, 2012. Filed under: Event Announcements, Exchanges, Flash Crash, Practitioners, Strategies, Technology | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

The Speed Traders Workshop 2012 Sao Paulo: How High Frequency Traders Leverage Profitable Strategies to Find Alpha in Equities, Options, Futures and FX

The Speed Traders Workshop 2012 Sao Paulo

Christian Zimmer, Head of Quantitative Trading and Research, and Hellinton Hatsuo Takada, Quantitative Trader, of Itaú Asset Management, compare the term high-frequency trading (HFT) to ‘Cleopatra’– sexy and mysterious and everyone is keen to know more about it. But the term HFT speaks for itself, so is it wasting time to go over it again? Probably not for the attendees to The Speed Traders Workshop 2012 Sao Paulo: How High Frequency Traders Leverage Profitable Strategies to Find Alpha in Equities, Options, Futures and FX, February 8th, BM&FBovespa, to be led by Mr. Edgar Perez, Adjunct Professor at the Polytechnic Institute of New York University.

Zimmer and Hatsuo suggest at FIX GLOBAL TRADING to look at the underlying trading strategies. The incentives an exchange should create to attract flow must be adjusted to the strategies that are really needed. Each strategy deserves a different set of policies and this will help the diversification of the traders’ strategies.

A trader using a market maker strategy can live with exchange fees as long as the bid-ask spread is sufficiently high. If the spread narrows, the costs become crucial and the exchange must lower the fees in order to keep this client in the market. On the other hand, a directional trader has different issues; if the fees are high, a trader must wait longer for a relevant price move so that they can capitalize on their position. Contrary to the market maker, the directional trader loves to see narrow bid-ask spreads. There would be no need to lower fees when the spread is close. The same is true for the statistical arbitrage traders.

When looking at the third party analyses of HFT in the international markets, Zimmer and Hatsuo see that the most common strategy is the market maker approach. This fact is strongly influenced by market fragmentation, which they do not have in Brazil. Fragmentation creates new intermarket trades, which could qualify as arbitrage trades, but not necessarily as market maker trades. Fragmentation also makes exchanges and other venues compete for the customers that provide liquidity and, as a result, give incentives to market makers. As mentioned above, Brazil does not have a fragmented market and BM&FBOVESPA does not see it necessary to ask for more liquidity. At least not as long as international capital flows are strong and increasing. Liquidity is needed in second tier shares and below.

The Speed Traders Workshop 2012 Sao Paulo, led by Edgar Perez, author, The Speed Traders,  will reveal how high-frequency trading players are succeeding in the global markets and driving the development of algorithmic trading at breakneck speeds from the U.S. and Europe to India, Singapore and Brazil. The Speed Traders Workshop 2012 Sao Paulo kicks off a series of presentations in the world’s most important financial centers: Dubai, January 25; Seoul, South Korea, March 28; Kuala Lumpur, Malaysia, April 11; Warsaw, Poland, May 11; Kiev, Ukraine, May 18; Singapore, May 26; Shanghai, China, June 6; Jakarta, Indonesia, June 13; Mexico City, Mexico, July 27; Hong Kong, August 4, and Moscow, Russia, August 10.

Mr. Perez is one of the great business networkers and motivators on the lecture circuit; he is available worldwide for the following speaking engagements: Present and Future of High-Frequency Trading, The Real Story behind the “Flash Crash”, Networking for Financial Executives, and Business Networking for Success.

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Why Emerging Markets Represent the Future for HFTs at The Speed Traders Workshop 2012 Sao Paulo, February 8th

Posted on January 18, 2012. Filed under: Event Announcements, Exchanges, Financial Crisis, Flash Crash, Strategies, Technology | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

The Speed Traders Workshop 2012 Sao Paulo: How High Frequency Traders Leverage Profitable Strategies to Find Alpha in Equities, Options, Futures and FX

The Speed Traders Workshop 2012 Sao Paulo at BM&FBovespa

Emerging markets are an inviting target for high-frequency traders going forward, proclaims Advanced Trading’s Justin Grant. He contrasted it to a suggestion by Utah Senator Orrin Hatch to institute a tax on high-frequency trading. One of these key markets is Brazil, where Mr. Edgar Perez, Adjunct Professor at the Polytechnic Institute of New York University, will lead The Speed Traders Workshop 2012 Sao Paulo: How High Frequency Traders Leverage Profitable Strategies to Find Alpha in Equities, Options, Futures and FX, February 8th, BM&FBovespa.

Earlier this year, the note continues, India’s Bombay Stock Exchange predicted computer based-trading in its $1.5 trillion stock market will double over the next three years. Meanwhile the Association of South East Asian Nations (ASEAN) is planning to debut the ASEAN Trading Link next year, which would electronically link exchanges in Thailand, Singapore and Malaysia. Vietnam, the Philippines, and Indonesia are also slated to link their exchanges to ASEAN Trading Link in 2012. Liquidity in those markets will undoubtedly surge as they mature, making them an enticing target for high-frequency trading firms.

Brazil probably represents the best opportunity for high-frequency traders over the near term. Earlier this month it lifted a financial transaction tax of its own for foreign investors and the BM&FBovespa has been aggressive in its efforts to boost trading volumes and attract liquidity.

So even as lawmakers in the U.S. and Europe weigh the merits of a Tobin Tax, a world of opportunity awaits high-frequency traders overseas. Perhaps the CBO is wrong in its assessment. The U.S. doesn’t need a tax to diminish its role as the premier market. Seems that’s happening anyway.
The Speed Traders Workshop 2012 Sao Paulo will reveal how high-frequency trading players are succeeding in the global markets and driving the development of algorithmic trading at breakneck speeds from the U.S. and Europe to India, Singapore and Brazil. The Speed Traders Workshop 2012 Sao Paulo kicks off a series of presentations in the world’s most important financial centers: Dubai, January 25; Seoul, South Korea, March 28; Kuala Lumpur, Malaysia, April 11; Warsaw, Poland, May 11; Kiev, Ukraine, May 18; Singapore, May 26; Shanghai, China, June 6; Jakarta, Indonesia, June 13; Mexico City, Mexico, July 27; Hong Kong, August 4, and Moscow, Russia, August 10.

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How Traders Profit With Computers Set at High Speed at The Speed Traders Workshop 2012 Sao Paulo, February 8th

Posted on January 18, 2012. Filed under: Event Announcements, Exchanges, Flash Crash, Strategies, Technology | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

The Speed Traders Workshop 2012 Sao Paulo: How High Frequency Traders Leverage Profitable Strategies to Find Alpha in Equities, Options, Futures and FX

Edgar Perez, The Speed Traders

Edgar Perez, Adjunct Professor at the Polytechnic Institute of New York University, will provide an Understanding of High Frequency Trading in Equities and other Asset Classes at The Speed Traders Workshop 2012 Sao Paulo: How High Frequency Traders Leverage Profitable Strategies to Find Alpha in Equities, Options, Futures and FX, February 8th, BM&FBovespa. Among other topics, Mr. Perez will discuss:

·         The need for speed and sophisticated computer programs in generating, routing, and executing orders

·         Co-location and individual data feeds to minimize latency

·         Time-frames for establishing and closing highly-liquid positions

·         Review of the most important strategies: market making, trend following, value arbitrage and others

The Speed Traders Workshop 2012 Sao Paulo will reveal how high-frequency trading players are succeeding in the global markets and driving the development of algorithmic trading at breakneck speeds from the U.S. and Europe to India, Singapore and Brazil. The Speed Traders Workshop 2012 Sao Paulo kicks off a series of presentations in the world’s most important financial centers: Dubai, January 25; Seoul, South Korea, March 28; Kuala Lumpur, Malaysia, April 11; Warsaw, Poland, May 11; Kiev, Ukraine, May 18; Singapore, May 26; Shanghai, China, June 6; Jakarta, Indonesia, June 13; Mexico City, Mexico, July 27; Hong Kong, August 4, and Moscow, Russia, August 10.

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‘How Speed Traders Leverage Cutting-Edge Strategies in the Post-Flash Crash World’ at São Paulo School of Economics, Fundação Getulio Vargas, with Edgar Perez

Posted on January 13, 2012. Filed under: Economy, Event Announcements, Flash Crash, Strategies | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

'How Speed Traders Leverage Cutting-Edge Strategies in the Post-Flash Crash World' at São Paulo School of Economics, Fundação Getulio Vargas, with Edgar Perez, The Speed Traders Workshop 2012

São Paulo School of Economics, Fundação Getulio Vargas

Edgar Perez will deliver an exclusive presentation on ‘How Speed Traders Leverage Cutting-Edge Strategies in the Post-Flash Crash World’ to students, faculty and alumni of the Escola de Economia de São Paulo da Fundação Getulio Vargas (FGV-EESP), Brazil, January 30th, 2012. Mr. Perez, the author of The Speed Traders, Modern Finance Bookof 2012, will review current developments in the algorithmic and high frequency worlds and opportunities and challenges for the industry moving forward.

São Paulo School of Economics (Escola de Economia de São Paulo) started the activities of its undergraduate course in 2004. Before that, the undergraduation activities of Fundação Getulio Vargas, in São Paulo, concentrated in the areas of public and private business administration. However, since the 80´s FGV already offered graduation courses in Economics at FGV-EAESP. Thus, aiming at enlarging the scope of its action, it created São Paulo School of Economics, encompassing the undergraduate course, the academic and professional graduate courses and the continuing education and specialization courses in Economics. In creating São Paulo School of Economics FGV had as its purpose the advancement of a centre of excellence in learning and research which contributed to the economic and social development of the country and to the pursuit of a national identity.

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The Present and Future of High Frequency Trading at FEA USP Sao Paulo with Edgar Perez, The Speed Traders Workshop 2012

Posted on January 11, 2012. Filed under: Event Announcements, Exchanges, Flash Crash, Strategies, Technology | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , |

The Speed Traders Workshop 2012 Sao Paulo: How High Frequency Traders Leverage Profitable Strategies to Find Alpha in Equities, Options, Futures and FX

The Speed Traders Workshop 2012 Sao Paulo

Edgar Perez, Adjunct Professor at the Polytechnic Institute of New York University, will speak on The Present and Future of High Frequency Trading at Faculdade de Economia, Administração e Contabilidade, Universidade de São Paulo (FEA USP), Brazil, January 31st, 2012. Mr. Perez, the author of The Speed Traders, Modern Finance Bookof 2012, will review current developments in the algorithmic and high frequency worlds and opportunities and challenges for the industry moving forward:

·         High-Frequency Trading is a set of tools that encompasses a rather diverse number of strategies that prioritize speed, low-latency, volume, liquid instruments and short timeframes

·         High-Frequency Trading has been referred to as the natural progression of technology applied to the investing and trading worlds

·         In the process, High-Frequency Trading has unmasked structural issues in the U.S. equity markets that are currently being examined by legislators and regulators

·         Speed traders will continue finding alpha-generating opportunities by trading new asset classes in new geographies employing more sophisticated tools than ever

Faculdade de Economia, Administração e Contabilidade, Universidade de São Paulo (FEA USP), or School of Economics, Business and Accounting at the University of São Paulo, is a teaching and research institution renowned across the world for its excellence in academic production and undergraduate and graduate programs. The FEA-USP was founded more than 60 years ago to prepare professionals in business, economics and accounting in a nation whose economy was going through a process of democratization after World War II. The school’s initial goal, one which exists to this day, was to form professionals who can contribute to society and make a difference in a positive way. Decades after its creation, FEA continues to set national and international standards in its field. The school follows the high standards of the University of São Paulo and combines its knowledge of the Brazilian reality with the methodology of reputed international institutions to distinguish itself in the preparation of economists, administrators and accounting specialists.

Mr. Perez will also present at BM&FBovespa The Speed Traders Workshop 2012 Sao Paulo: How High Frequency Traders Leverage Profitable Strategies to Find Alpha in Equities, Options, Futures and FX, on February 8th. This workshop will reveal how high-frequency trading players are succeeding in the global markets and driving the development of algorithmic trading at breakneck speeds from the U.S. and Europe to India, Singapore and Brazil, and kicks off a series of presentations in the world’s most important financial centers: Dubai, January 25; Seoul, South Korea, March 28; Kuala Lumpur, Malaysia, April 11; Warsaw, Poland, May 11; Kiev, Ukraine, May 18; Singapore, May 26; Shanghai, China, June 6; Jakarta, Indonesia, June 13; Mexico City, Mexico, July 27; Hong Kong, August 4, and Moscow, Russia, August 10.

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The Speed Traders Selected Modern Finance Book of 2011

Posted on December 21, 2011. Filed under: Book Review, Event Announcements, Flash Crash, Technology | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

The Speed Traders: An Insider’s Look at the New High-Frequency Trading Phenomenon That is Transforming the Investing WorldThe Speed Traders, An Insider’s Look at the New High-Frequency Trading Phenomenon That is Transforming the Investing World (http://www.thespeedtraders.com), by Mr. Edgar Perez , has been selected as Modern Finance Book of 2011 by prestigious financial blog Modern Finance Report. As another year draws to a close, editors at Modern Finance Report shared with readers some of their favorite business books of the year.

From Modern Finance Report, “high-frequency trading (HFT) is the most controversial form of investing today, and speed traders have generally flown under the radar; in the name of protecting the algorithms they have spent so much time perfecting, they almost never talk to the press and disclose as little as possible about how they operate—until now.” Modern Finance Report cites then Bart Chilton, United States Commodity Futures Trading Commissioner: “Edgar’s book is fantastic . . . I recommend it highly.”

The Speed Traders, published by McGraw-Hill Inc., is the most comprehensive, revealing work available on the most important development in trading in generations. High-frequency trading will no doubt play an ever larger role as computer technology advances and the global exchanges embrace fast electronic access. The Speed Traders explains everything there is to know about how today’s high-frequency traders make millions—one cent at a time. In this new title, The Speed Traders, Mr. Perez opens the door to the secretive world of high-frequency trading. Inside, prominent figures drop their guard and speak with unprecedented candidness about their trade.

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Only Days Before The Speed Traders Workshop 2011 Hong Kong, HFT Strategies to Find Alpha in Equities, Options, Futures and FX

Posted on December 3, 2011. Filed under: Event Announcements, Exchanges, Flash Crash, Practitioners | Tags: , , , , , , , , , , , , , , , , , , , , , , |

The Speed Traders Workshop 2011: How High Frequency Traders Leverage Profitable Strategies to Find Alpha in Equities, Options, Futures and FX

The Speed Traders Workshop 2011 Hong Kong

Edgar Perez will lead The Speed Traders Workshop 2011: How High Frequency Traders Leverage Profitable Strategies to Find Alpha in Equities, Options, Futures and FX (http://www.thespeedtradersworkshop.com), in Hong Kong, December 12, 2011. Mr. Perez, author of The Speed Traders, An Insider’s Look at the New High-Frequency Trading Phenomenon That is Transforming the Investing World (http://www.thespeedtraders.com), will reveal at The Speed Traders Workshop 2011 Hong Kong  how high-frequency trading players are succeeding in the global markets and driving the development of algorithmic trading at breakneck speeds from the U.S. and Europe to India, Singapore and Brazil.

Charles Li, Chief Executive Officer of Hong Kong Exchanges and Clearing Limited (HKEx), published on 26 July an article in Chinese on HKEx’s market reform; in the article, he pointed out that the enhancement of their infrastructure was a top priority in the Strategic Plan.  They had begun upgrading their trading and information systems to the next generation, building a new data centre in Tseung Kwan O and developing hosting services.

In addition, he indicated that he didn’t not agree with the view that enhancing their IT infrastructure favored high frequency traders or the large brokers.  Building the IT infrastructure was for him like building a highway: “We should not abandon highway construction just because a few do not want to invest in new cars or a few fear accidents.  We believe Hong Kong’s current market framework, which includes stamp duty, effectively limits high-frequency trading, just like a highway with many toll booths discourages speeding.  Besides, even if we don’t build the highway, we cannot prevent others from doing so and diverting liquidity, leading to market fragmentation.” No doubt it won’t long before high-frequency trading races on Hong Kong’s fast information highways.

The Speed Traders Workshop 2011 Hong Kong (http://thespeedtradersworkshophk.eventbrite.com) opens the door to the secretive world of high-frequency trading, the most controversial form of investing today; in the name of protecting the algorithms they have spent so much time perfecting, speed traders almost never talk to the press and disclose as little as possible about how they operate. The Speed Traders Workshop 2011Hong Kong will reveal how high-frequency trading players are succeeding in the global markets and driving the development of algorithmic trading at breakneck speeds from the U.S. and Europe to India, Singapore and Brazil.

Mr. Perez is one of the great business networkers and motivators on the lecture circuit; he is available worldwide for the following speaking engagements: Present and Future of High-Frequency Trading, The Real Story behind the “Flash Crash”, Networking for Financial Executives, and Business Networking for Success.

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The Present and Future of High Frequency Trading at Middle East Hedge Funds Investors Summit 2012, Dubai, UAE

Posted on November 30, 2011. Filed under: Event Announcements, Flash Crash, Practitioners | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

The Present and Future of High Frequency Trading at Middle East Hedge Funds Investors Summit 2012, Dubai, UAE

Jumeirah Beach Hotel, Dubai, UAE

The Present and Future of High Frequency Trading is the topic Mr. Edgar Perez, author of The Speed Traders, An Insider’s Look at the New High-Frequency Trading Phenomenon That is Transforming the Investing World (http://www.thespeedtraders.com) and Adjunct Professor at the Polytechnic Institute of New York University will present at the upcoming Middle East Hedge Funds Investors Summit 2012, January 23-24, Jumeirah Beach Hotel, Dubai, UAE.

The Middle East Hedge Funds Investors Summit 2012 is the region’s premier meeting place for Middle East Institutional Investors, SWFs, Pension and Insurance Funds, HNWIs, Investment Houses and Family Offices. In an exclusive association with CNBC Arabiya, Middle East Hedge Funds Investors Summit 2012offers unique access to the region’s alternatives and hedge funds investors and an expert speaker faculty featuring Regional Investors, Economists, and Investment gurus, Wealth Managers, Strategists and Star Managers.

The Middle East Hedge Funds Investors Summit 2012 brings insights from top Middle East investors on how and why Middle East investors are responding as New Portfolio Managers with New Mandates post Madoff. With Middle East investors contributing on a host of influential topics and panels, attendees get real insights into what needs to be done and required by these Middle East investors to overcome the hurdles for successful hedge fund investing. Attendees hear the latest investment strategies discussed to get an in depth analysis of the Investors take on the key issues of Liquidity, Risk, Transparency, Portfolio Management, Due Manager Selection, Benchmarking and the performance of Managers, Funds and Alpha.

Mr. Perez, widely regarded as the preeminent speaker and networker in the specialized area of high-frequency trading, will cover the following themes in his speech:

The Speed Traders Workshop 2011 (http://www.thespeedtradersworkshop.com), led by Mr. Perez in the world’s most important financial centers, will reveal how high-frequency trading players are succeeding in the global markets and driving the development of algorithmic trading at breakneck speeds from the U.S. and Europe to Dubai, Sao Paulo, Jakarta, Singapore, Hong Kong, Seoul and Shanghai. Highlights of The Speed Traders Workshop 2011 include:

  • The first and most comprehensive initiation to the world of high-frequency trading
  • Study materials provided by Edgar Perez, the author of the latest book on the subject of speed trading, and a well-known presenter in America, Europe and Asia
  • Latest update on high-frequency trading in the world and current regulatory initiatives
  • Techniques to detect high-frequency trading in the markets
  • Key enablers of high-frequency trading in the U.S., Europe and Asia
  • Proposed regulatory initiatives after the “flash crash”
  • Up-to-date review of the future of high-frequency trading

Mr. Perez is one of the great business networkers and motivators on the lecture circuit; he is available worldwide for the following speaking engagements: Present and Future of High-Frequency Trading, The Real Story behind the “Flash Crash”, Networking for Financial Executives, and Business Networking for Success.

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Edgar Perez, Author, The Speed Traders, Keynote Speaker at High Frequency Trading Leaders Forum Singapore

Posted on November 14, 2011. Filed under: Event Announcements, Flash Crash, Practitioners | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , |

Edgar Perez, Author, The Speed Traders, Keynote Speaker at High Frequency Trading Leaders Forum Singapore

Edgar Perez, Author, The Speed Traders

Edgar Perez, Author, The Speed Traders, will be featured Keynote Speaker at High-Frequency Trading Leaders Forum 2011 Singapore (http://www.HFTLeadersForum.com), November 21-23, forum organized by Golden Networking in the world’s major financial centers, including New York, Chicago, Hong Kong, Sao Paulo and London.

Mr. Perez is widely regarded as the pre-eminent networker in the specialized area of high-frequency trading. He is author of The Speed Traders, published by McGraw-Hill, founder of Golden Networking and host of High-Frequency Trading Happy Hour business receptions in New York City, Chicago, London, Hong Kong and Singapore.

Mr. Perez has been featured on CNBC Cash Flow (with Oriel Morrison), BNN Business Day with Kim Parlee, TheStreet.com (with Gregg Greenberg), Channel NewsAsia (with Lin Xue Ling), iMoney Hong Kong, Hedge Fund Brief, The Wall Street Journal, The New York Times, Dallas Morning News and Los Angeles Times. He has been engaged as speaker at Harvard Business School’s 17th Annual Venture Capital & Private Equity Conference, High-Frequency Trading Leaders Forum 2011 (New York, Chicago, Hong Kong, Sao Paulo, Singapore), CFA Singapore, Hong Kong Securities Institute, Courant Institute of Mathematical Sciences at New York University (New York), Global Growth Markets Forum (London), Middle East Hedge Funds Investors Summit 2012 (Dubai, UAE), among other global forums.

Mr. Perez was a vice president at Citigroup, a senior consultant at IBM, and a consultant at McKinsey & Co. in New York City.  Mr. Perez has an undergraduate degree from Universidad Nacional de Ingeniería, Lima, Peru (1994), a Master of Administration from Universidad ESAN, Lima, Peru (1997) and a Master of Business Administration from Columbia Business School, with a dual major in Finance and Management (2002). He belongs to the Beta Gamma Sigma honor society. Mr. Perez resides in the New York City area and is an accomplished salsa and hustle dancer.

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Edgar Perez Presenting at Institutional Investor’s Global Growth Markets Forum in London

Posted on October 26, 2011. Filed under: Event Announcements, Exchanges, Flash Crash, Practitioners | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

The Speed Traders: An Insider’s Look at the New High-Frequency Trading Phenomenon That is Transforming the Investing World

The Speed Traders

Mr. Edgar Perez, author of The Speed Traders, An Insider’s Look at the New High-Frequency Trading Phenomenon That is Transforming the Investing World (http://www.thespeedtraders.com), will be presenting at Institutional Investor’s Global Growth Markets Forum, Achieving International Investment Standards,  in Waldorf Hilton, London, November 2nd. He will be interviewed on the topic “High-Frequency Trading Opportunities in Emerging Markets”.

The stock exchanges and the securities houses in many growth markets globally are keen to increase capital inflows, and this means improving the factors international investors care about most: regulations, rules, and infrastructure. These exchanges and brokerages understand that, to capitalize on investors’ growing appetite for emerging markets/frontier assets, they need to be able to offer US and European institutions comfort their investments are being made in an efficient, transparent, and globally competitive manner.

This Global Growth Markets Forum, co-hosted by Institutional Investor and Marco Polo Capital Markets, will assess the steps exchanges and other important players in these economies now driving global economic growth are taking to achieve international standards. Experts will evaluate the progress of the exchanges and the securities houses regarding each of the central pillars of sound investing: regulation, compliance, and execution. Delegates will acquire an in-depth understanding of the investment opportunities and the status of the capital markets in the global growth markets from the leading domestic security houses and other experts.

The Speed Traders, published by McGraw-Hill Inc., is the most comprehensive, revealing work available on the most important development in trading in generations. High-frequency trading will no doubt play an ever larger role as computer technology advances and the global exchanges embrace fast electronic access. The Speed Traders explains everything there is to know about how today’s high-frequency traders make millions—one cent at a time. In this new title, The Speed Traders, Mr. Perez opens the door to the secretive world of high-frequency trading. Inside, prominent figures drop their guard and speak with unprecedented candidness about their trade.

Mr. Perez is widely regarded as the pre-eminent networker in the specialized area of high-frequency trading. He has been featured on CNBC Cash Flow with Oriel Morrison, BNN Business Day with Kim Parlee, TheStreet.com with Gregg Greenberg, Channel NewsAsia Cent & Sensibilities with Lin Xue Ling, The Wall Street Journal, The New York Times, The Dallas Morning News, Los Angeles Times, iMoney Hong Kong, Hedge Fund Brief, Oriental Daily News Hong Kong, and more. He has been engaged as speaker at Harvard Business School’s 17th Annual Venture Capital & Private Equity Conference, High-Frequency Trading Leaders Forum 2011 (New York, Chicago, Hong Kong, Sao Paulo, Singapore), CFA Singapore, Hong Kong Securities Institute, Courant Institute of Mathematical Sciences at New York University (New York), Global Growth Markets Forum (London), Technical Analysis Society (Singapore), Middle East Hedge Funds Investors Summit 2012 (Riyadh, Saudi Arabia), among other global forums.

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Market Expert Speak: High-Frequency Trading Should be Regulated, Not Stopped

Posted on August 30, 2011. Filed under: Exchanges, Financial Crisis, Flash Crash, Practitioners | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

The Speed Traders Workshop 2011: The Present and Future of High-Frequency Trading

The Speed Traders Workshop 2011

High-frequency trading should continue to be regulated and not stopped, indicated Edgar Perez, The Speed Traders Workshop 2011: The Present and Future of High-Frequency Trading (http://www.thespeedtradersworkshop.com), on an interview with Hong Kong’s Oriental Daily News, for its column Market Expert Speak (http://orientaldaily.on.cc/cnt/finance/20110830/00275_001.html). Perez, author of The Speed Traders, An Insider’s Look at the New High-Frequency Trading Phenomenon That is Transforming the Investing World (http://www.thespeedtraders.com), noted that high-frequency trading in particular is a development that was born out of the evolution of the regulatory environment, certainly facilitated by technology; therefore, it would be against its roots to oppose regulation per se.

As Ben van Vliet, Adjunct Professor at the Illinois Institute of Technology, says in The Speed Traders, “We all want to race fast but safe. It doesn’t do any good if someone crashes into the innocent crowd and kills people. There are external people that may be affected when things crash. What we want the government to do is to create a safe track for us to race fast.” Perez noted that regulators in the U.S. have adopted circuit breakers in May 2010 for 404 NYSE listed S&P 500 stocks and widened in September for Russell 1000 stocks to halt or slow down trades of a particular stock if the price moves 10% or more in a five-minute period; lately, they have proposed limit up, limit down rules, which would require that trades in all listed stocks be executed within a range tied to the recent prices for that security and impose a five-minute pause if trading is unable to occur within the price band for more than 15 seconds; those are measures that fall into the category of improvements to the race tracks for high-frequency trading. Additionally, they are implementing a consolidated audit trail that would help the SEC track information about trading orders so it can better understand the fast-paced markets. Ultimately, a flexible regulatory environment that can incorporate input from participants will be the optimal setting for the development of the industry.

Market Expert Speak: High-Frequency Trading Should be Regulated, Not Stopped

High-Frequency Trading Should be Regulated, Not Stopped

The Speed Traders Workshop 2011, led by Edgar Perez, will reveal how high-frequency trading players are succeeding in the global markets and driving the development of algorithmic trading at breakneck speeds from the U.S. and Europe to India, Singapore and Brazil. Highlights of The Speed Traders Workshop 2011 include:

  • The first and most comprehensive initiation to the world of high-frequency trading
  • Study materials provided by Edgar Perez, the author of the latest book on the subject of speed trading, and a well-known presenter in America, Europe and Asia
  • Latest update on high-frequency trading in the world and current regulatory initiatives
  • Techniques to detect high-frequency trading in the markets
  • Key enablers of high-frequency trading in the U.S., Europe and Asia
  • Proposed regulatory initiatives after the “flash crash”
  • Up-to-date review of the future of high-frequency trading

The Speed Traders, published by McGraw-Hill Inc., is the most comprehensive, revealing work available on the most important development in trading in generations. High-frequency trading will no doubt play an ever larger role as computer technology advances and the global exchanges embrace fast electronic access. The Speed Traders explains everything there is to know about how today’s high-frequency traders make millions—one cent at a time. In this new title, The Speed Traders, Mr. Perez opens the door to the secretive world of high-frequency trading. Inside, prominent figures drop their guard and speak with unprecedented candidness about their trade. For more about The Speed Traders, readers can visit its Facebook and Twitter pages, as well as the most popular online retailers, including Amazon, Barnes & Noble and Borders, among others.

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Long-Term Investors’ Fears Driving Increased Volatility

Posted on August 29, 2011. Filed under: Economy, Financial Crisis, Flash Crash, Strategies, Technology | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

The Speed Traders' Edgar Perez with BNN's Kim Parlee

The Speed Traders' Edgar Perez with BNN's Kim Parlee

For Edgar Perez, author of The Speed Traders, An Insider’s Look at the New High-Frequency Trading Phenomenon That is Transforming the Investing World (http://www.thespeedtraders.com), increased volatility experienced by financial markets is being driven by long-term investors’ fears. Mr. Perez, who was recently featured on BNN’s Business Day and interviewed by Kim Parlee, reflected that similar concerns drove volatility to record heights during the Great Depression and Black Monday.

The stock market crash on October 29, 1929 set in motion a series of events that led to the Great Depression, but in fact, the American economy and global economy had been in turmoil six months prior to Black Tuesday, and a variety of factors before and after that fateful date in October caused and exacerbated the Great Depression. While America prospered during the 1920s, most of Europe, still reeling from the devastation of World War I, fell into economic decline. America soon became the world’s banker, and as Europe started defaulting on loans and buying less American products, the Great Depression spread. With only loose stock market regulations in place before the Great Depression, investors were able speculate wildly, buying stocks on margin, needing only 10% of the price of a stock to be able to complete the purchase. Rampant speculation led to falsely high stock prices, and when the stock market began to tumble in the months leading up to the October 1929 crash, speculative investors couldn’t make their margin calls, and a massive sell-off began. While the great rise in the stock market (from 181 points in early 1928 to 381 points in September 1929) was fueled by optimism and false hope, the plunge was flamed by stark fear.

Similar situation happened on Black Monday, the name given to Monday, October 19, 1987, when stock markets around the world ‘crashed’, shedding a huge value in a very short period. The crash began in Hong Kong, spread west through international time zones to Europe, hitting the United States after other markets had already declined by a significant margin. At the time, economists feared that if the U.S. economy faltered, the entire world economy would stumble and fall into recession again, as it had in 1981–82. Many observers now believe the panic of Black Monday simply reflected a spreading fear that the world situation was rapidly becoming unmanageable.

Fast forward to 2011, CNN’s Richard Quest concludes too that the causes of this latest crisis are fear, worry and concern, three uncomfortable bedfellows that have wreaked havoc on the world’s financial markets. “What pushed everyone over the edge was the debt ceiling debacle and the downgrading of U.S. debt by ratings agency Standard & Poor’s, that was followed by a 630 point fall in the Dow Jones index.”

Fear that the world situation is becoming unmanageable is driving long-term investors to dump equities and look for protection in less risky instruments, ironically, recently S&P downgraded U.S. treasuries. Economists at JPMorgan, in their weekly reprise of economic developments, blamed the recent global stock selloff on “a sense of policy paralysis in the U.S. and Europe, which has driven home the point that there is no cavalry to ride to the rescue.” While the sentiment is the same as in the 20s, 1987 and now, certain market participants will always look for a culprit, role played by high-frequency trading this time. No doubt if another crisis comes our way in the future, another group will receive the blame, only to be absolved by financial historians.

The Speed Traders' Edgar Perez on Canada's BNN's Business Day

The Speed Traders' Edgar Perez on BNN's Business Day

BNN’s Business Day puts a spotlight on the stocks and stories expected to move the markets, and then switches to minute-by-minute coverage throughout the trading day in Canada and the U.S. Kim Parlee, Marty Cej, Frances Horodelski, and Martin Baccardax along with BNN‘s team of reporters and expert guests provide comprehensive reporting along with the best background and analysis in the business. Business News Network (BNN) is the Canadian English language cable television business channel; BNNbroadcasts programming related to business and financial news and analysis.

The Speed Traders, published by McGraw-Hill Inc., is the most comprehensive, revealing work available on the most important development in trading in generations. High-frequency trading will no doubt play an ever larger role as computer technology advances and the global exchanges embrace fast electronic access. The Speed Traders explains everything there is to know about how today’s high-frequency traders make millions—one cent at a time. In this new title, The Speed Traders, Mr. Perez opens the door to the secretive world of high-frequency trading. Inside, prominent figures drop their guard and speak with unprecedented candidness about their trade. For more about The Speed Traders, readers can visit its Facebook and Twitter pages, as well as the most popular online retailers, including Amazon, Barnes & Noble and Borders, among others.

Mr. Perez is widely regarded as the pre-eminent networker in the specialized area of high-frequency trading. He has been featured on CNBC Cash Flow with Oriel Morrison (http://video.cnbc.com/gallery/?video=2023403523), BNN Business Day with Kim Parlee (http://watch.bnn.ca/business-day/august-2011/business-day-august-19-2011/#clip519647), TheStreet.com with Gregg Greenberg (http://www.thestreet.com/video/11144274/high-frequency-traders-not-the-enemy.html), and Channel NewsAsia Cent & Sensibilities with Lin Xue Ling, and engaged as speaker at Harvard Business School’s 17th Annual Venture Capital & Private Equity Conference, High-Frequency Trading Leaders Forum 2011 (New York, Chicago, Hong Kong, Sao Paulo, Singapore), CFA Singapore, Hong Kong Securities Institute, Courant Institute of Mathematical Sciences at New York University (New York), Global Growth Markets Forum (London), Technical Analysis Society (Singapore), Middle East Hedge Funds Investors Summit 2012 (Riyadh, Saudi Arabia), among other global forums.

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Edgar Perez, Author, The Speed Traders, to Present at Middle East Hedge Funds Investors Summit 2012, Dubai, UAE

Posted on August 17, 2011. Filed under: Economy, Event Announcements, Financial Crisis, Flash Crash, Technology | Tags: , , , , , , , , , |

The Speed Traders: An Insider’s Look at the New High-Frequency Trading Phenomenon That is Transforming the Investing World

The Speed Traders, by Edgar Perez

Mr. Edgar Perez, author of The Speed Traders, An Insider’s Look at the New High-Frequency Trading Phenomenon That is Transforming the Investing World (http://www.thespeedtraders.com), will present at upcoming Middle East Hedge Funds Investors Summit 2012, January 22-24, Dubai, UAE, on “The Present and Future of High-Frequency Trading”. The Middle East Hedge Funds Investors Summit 2012 is the region’s premier meeting place for Middle East Institutional Investors, SWFs, Pension and Insurance Funds, HNWIs, Investment Houses and Family Offices. In an exclusive association with CNBC Arabiya, Middle East Hedge Funds Investors Summit 2012 offers unique access to the region’s alternatives and hedge funds investors and an expert speaker faculty featuring Regional Investors, Economists, and Investment gurus, Wealth Managers, Strategists and Star Managers.

The Middle East Hedge Funds Investors Summit 2012 will bring insights from top Middle East investors on how and why Middle East investors are responding as New Portfolio Managers with New Mandates post Madoff. With Middle East investors contributing on a host of influential topics and panels, attendees will get real insight into what needs to be done and required by these Middle East investors to overcome the hurdles for successful hedge fund investing. Attendees will hear the latest investment strategies discussed to get an in depth analysis of the Investors take on the key issues of Liquidity, Risk, Transparency, Portfolio Management, Due Manager Selection, Benchmarking and the performance of Managers, Funds and Alpha.

The Speed Traders, published by McGraw-Hill Inc., is the most comprehensive, revealing work available on the most important development in trading in generations. High-frequency trading will no doubt play an ever larger role as computer technology advances and the global exchanges embrace fast electronic access. The Speed Traders explains everything there is to know about how today’s high-frequency traders make millions—one cent at a time. In this new title, The Speed Traders, Mr. Perez opens the door to the secretive world of high-frequency trading. Inside, prominent figures drop their guard and speak with unprecedented candidness about their trade.

Mr. Perez is one of the great business networkers and motivators on the lecture circuit; he is available worldwide for the following speaking engagements: Present and Future of High-Frequency Trading, The Real Story behind the “Flash Crash”, Networking for Financial Executives, and Business Networking for Success

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The Speed Traders Author, Edgar Perez, to Present at New York University’s Courant Institute of Mathematical Sciences

Posted on August 17, 2011. Filed under: Event Announcements, Flash Crash, Securities, Technology | Tags: , , , , , , , , |

Mr. Edgar Perez, author of The Speed Traders, An Insider’s Look at the New High-Frequency Trading Phenomenon That is Transforming the Investing World (http://www.thespeedtraders.com), will present on November 8th during Tuesday Seminars for the Mathematics in Finance Masters Students at the Courant Institute of Mathematical Sciences, New York University, on the subject “The Present and Future of High-Frequency Trading”. Not only do these seminars give students an opportunity to learn about what Wall Street and finance practitioners do, and hear about recent research in academia and industry, but also to personally meet and interact with speakers such as Mr. Perez and professionals in the investment world.

Edgar Perez, Author, The Speed Traders

The Full Time Masters in Mathematics in Finance at the Courant Institute of Mathematical Sciences, New York University is a three-semester professional masters degree with the expectation that students are seeking positions in the financial industry. Entry into the full-time MS program can be made only in the fall. Students take four courses per semester, participate in the weekly Masters Seminar, and usually do an internship during the summer between the second and third semesters. While the program is not able to guarantee placement in summer internship positions, we do have strong contacts within the financial community and offer significant help by distributing resumes to prospective employers and hosting on-campus interviews. The track record of our students receiving summer internships is extremely strong. We place heavy emphasis on job placement, with assistance given to resume preparation, interviewing skills, and access to our growing network of contacts.

The Speed Traders, published by McGraw-Hill Inc., is the most comprehensive, revealing work available on the most important development in trading in generations. High-frequency trading will no doubt play an ever larger role as computer technology advances and the global exchanges embrace fast electronic access. The Speed Traders explains everything there is to know about how today’s high-frequency traders make millions—one cent at a time. In this new title, The Speed Traders, Mr. Perez opens the door to the secretive world of high-frequency trading. Inside, prominent figures drop their guard and speak with unprecedented candidness about their trade.

Mr. Perez is one of the great business networkers and motivators on the lecture circuit; he is available worldwide for the following speaking engagements: Present and Future of High-Frequency Trading, The Real Story behind the “Flash Crash”, Networking for Financial Executives, and Business Networking for Success.

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For Industry Veteran, High-Frequency Trading is going to get Bigger, Stronger and more Prevalent

Posted on August 3, 2011. Filed under: Event Announcements, Flash Crash, Technology | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

For John Netto, one of the leading high-frequency traders featured in Edgar Perez’s The Speed Traders: An Insider’s Look at the New High-Frequency Trading Phenomenon That is Transforming the Investing World, high-frequency trading is going to get bigger, stronger and more prevalent. “There are potential regulatory changes that might impact the growth of high-frequency trading; that is always a possibility. They have talked about co-location and proximity legislation but who knows how it all shakes and if the desired results from this legislation are accomplished.”

Netto is the Founder and President of M3 Capital. Mr. Netto has worked with buy-side firms, sell-side firms, and technology providers on more efficiently combining structure, strategy, and personnel to increase trading profits. Mr. Netto has presented on behalf of Eurex, CME Group, The ICE, ISE, Interactive Brokers, Thomson Reuters, Profit-Loss Forex Conferences and Golden Networking as well as appearing regularly on Forex TV, Fox Business Channel, The Money Show Video Network, and many other media outlets.

Mr. Netto sees more traditional investment managers expanding into high-frequency trading; more managers are using technology as in means of investing. Similarly, he sees more institutional investors allocating part of their asset base to quantitative trading strategies. He adds: “I think at this moment the future is more than just technology, as it is already very robust; it would be more about the adoption of the technology which will determine how fast things go. Not every exchange has the same technology or robust infrastructure; I think what we will see is that more and more firms, more and more exchanges around the world get caught up and then it will be about the interchangeability of the technology. And not just from a hardware standpoint but also from a software standpoint. Issues such as ‘what exchange trade data can we give up to another exchange trade data’, and ‘how that data gets aggregated’. Considering the current environment, the future will be more about data aggregation and data processing, and getting that data in the hands of the right people than who will build the fastest server.”

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For Renowned Speed Trader, Humans Not Allowed Anywhere Near High-Frequency Execution System

Posted on July 27, 2011. Filed under: Flash Crash, Strategies, Technology | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

It took a while for Adam Afshar, one of the leading high-frequency traders featured in Edgar Perez’s The Speed Traders: An Insider’s Look at the New High-Frequency Trading Phenomenon That is Transforming the Investing World, to believe that the markets were more or less efficient under normal circumstances and to realize that the analysts at most firms provided no value and sometimes a negative value. He says, “My first attempt at using the computer was to build a system to help traders have better information faster to enable them or their portfolio managers to make better decisions, a sort of hybrid system where the computers are helping the humans. But, in less than a year, I realized that discretionary human participation in selection, portfolio management , or trading was so deleterious that no amount of computer power or intellectual algorithms  could mitigate it.”

Adam Afshar

Adam Afshar, Renowned Speed Trader- Hyde Park Global Investments

He adds: “It’s very important to stress this point because if the system allows human discretion at any level (idea generation, portfolio management, or trading) and your machine does not have the human discretionary elements modeled correctly in its learning algorithm (which we claim is not possible at this time), what you are left with is simply a quantitative trader  that uses certain calculations to assist his or her trading. It becomes difficult or even impossible to assess whether the success or failure was due to the calculations, formula, or algorithms . Although we can argue on the pros and cons of humans as traders, we have to agree that this method is not and cannot be scientific. It is not scientific because it is not possible to backtest a model that allows any discretionary human intervention. For example, if you have computers  that are generating trades, but the execution is done by humans, then we would argue that you cannot determine whether the success or failure of the system was due to its robust artificial intelligence  or to a very good trader, and there is no way of testing and duplicating the results. Therefore, we would argue that any backtesting becomes essentially void.”

Hyde Park Global Investments, Afshar’s firm, is an investment and trading firm that has developed an artificial intelligence system built primarily on genetic algorithms and other evolutionary models to identify mispricings, arbitrage, and patterns for many electronic financial markets  and the robotic platform  to monetize the opportunities. The firm, which trades its own capital so far, potentially will accept investments from outside sources.

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For Tradeworx’s Manoj Narang, High-Frequency Traders are Among the Most Responsible and Risk-Averse Players in the Market

Posted on July 25, 2011. Filed under: Financial Crisis, Flash Crash, Practitioners, Technology | Tags: , , , , , , , , |

For Manoj Narang, Chief Executive Officer of Tradeworx, one glaring misconception is that high-frequency trading generates massive profits for Wall Street. First of all, he says, Wall Street has very little to do with high-frequency trading, and second, the profits are actually very modest. He adds: “People have the misconception that high-frequency trading practitioners have a kind of ‘cowboy mentality’ and that the markets are like the Wild West as a result. Nothing could be further from the truth. high-frequency trading are among the most responsible and risk-averse players in the market. They have never been implicated in any sort of wild risk-taking behavior, which is quite a contrast from the Wall Street traders who nearly brought the global economy to total collapse in 2008.”

Manoj Narang, CEO, Tradeworx

Manoj Narang, CEO, Tradeworx

Mr. Narang, one of the leading high-frequency traders featured in Edgar Perez’s The Speed Traders: An Insider’s Look at the New High-Frequency Trading Phenomenon That is Transforming the Investing World, founded Tradeworx in 1999 with the goal to democratize the role of advanced technology in the financial markets. Tradeworx also operates a quantitative hedge fund business that currently manages hundreds of millions of dollars in assets, as well as an in-house proprietary trading business focused on high-frequency trading strategies. Tradeworx trades U.S. equities and will eventually expand to all other electronic markets. As most high-frequency trading firms, Tradeworx doesn’t accept external capital, because the capital requirements are very low. The main use of outside capital in the world of high-frequency trading is to fund R&D and operations, not to actually trade the capital.

Mr. Narang finally adds: “high-frequency trading provides a valuable service to the market, and earns a relatively tiny profit in return. Let’s consider this, when an individual investor executes a 200-share order in their online brokerage account, the investor pays a broker five cents per share to execute the trade. The broker does not risk any of its own capital to do this; all he does is route the order to the exchange or to a market-maker. The player on the other end who actually provides a fill for the trade is a high-frequency trader. The high-frequency trader not only risks his own capital to provide the required liquidity, but in exchange, only receives about 1/50th of the compensation that the broker, who takes no risk whatsoever, makes on the very same trade. If people have a grievance with the financial establishment, they should ask their broker why they need to earn fifty times the amount that the liquidity provider earns, despite the fact that they are not even risking any capital on the trade!”

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High-Frequency Trading is just Automating the Routine Tasks that Traders have been Performing for Decades, Says Infinium’s Aaron Lebovitz

Posted on July 24, 2011. Filed under: Event Announcements, Flash Crash, Practitioners, Technology | Tags: , , , , , , , , , |

For Aaron Lebovitz, one of the leading high-frequency traders featured in Edgar Perez’s The Speed Traders: An Insider’s Look at the New High-Frequency Trading Phenomenon That is Transforming the Investing World, high-frequency trading is just automating the routine tasks that traders have been performing for decades. He adds that there is a misconception that  high-frequency trading is about making money at the expense of end users. “In fact,  high-frequency trading is about innovating with  technology to reduce market frictions. When Walmart figured out how to use technology to improve logistics and reduce costs, who benefitted? The consumer. Who didn’t benefit? Sears, K-Mart, the other stores that were trying do the same thing but with a higher cost structure. The analogy is not perfect, but you get the point.”

Aaron Lebovitz

Aaron Lebovitz, Infinium Capital

Mr. Lebovitz built the Algorithmic and Event Driven Trading department at Infinium Capital Management, a proprietary capital management firm with offices in Chicago, New York and London, into an exceptional force in the industry. Infinium was founded in Chicago in 2001 and built by a core team with decades of experience in trading, software development, and financial modeling. As most  high-frequency trading firms, Infinium has no outside investors and only manages its own money. Infinium has a long history of partnering with exchanges to launch new products, increase participation in existing products and solve technology issues.

Mr. Lebovitz concludes: “The facts are that our industry has historically been secretive about its activities, for various reasons. Some of this has to do with safeguarding intellectual property, but it also has to do with the creative destruction that this technological revolution has catalyzed. Some very established, very powerful industry players saw high-frequency trading as a threat to their distribution channels, or to their trading desks’ ability to get paid for providing liquidity. That created a disincentive for high-frequency traders to advertise their presence. Now, it has become quite clear that there is a lack of information out there regarding the activities and contributions of high-frequency traders, which has in turn led to some misinformation filling the gaps. As practitioners, we have a responsibility to change that.”

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Edgar Perez, Author of The Speed Traders, to Host High-Frequency Trading Happy Hour Chicago Tuesday 26

Posted on July 23, 2011. Filed under: Event Announcements, Exchanges, Flash Crash, Technology | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

The Speed Traders: An Insider’s Look at the New High-Frequency Trading Phenomenon That is Transforming the Investing WorldEdgar Perez, author of The Speed Traders, An Insider’s Look at the New High-Frequency Trading Phenomenon That is Transforming the Investing World (http://www.thespeedtraders.com), will host High-Frequency Trading Happy Hour Chicago (http://hfthappyhourchicago.eventbrite.com), at Public House this Tuesday July 26, from 6:00 p.m. to 9:00 p.m. Traders, quants, investors, managers, and industry professionals will be in attendance at High-Frequency Trading Happy Hour Chicago, which follows recent presentations by Mr. Perez in New York, Hong Kong, and Singapore.

The Speed Traders, published by McGraw-Hill Inc., is the most comprehensive, revealing work available on the most important development in trading in generations. High-frequency trading will no doubt play an ever larger role as computer technology advances and the global exchanges embrace fast electronic access. The Speed Traders explains everything there is to know about how today’s high-frequency traders make millions—one cent at a time. In this new title, The Speed Traders, Mr. Perez opens the door to the secretive world of high-frequency trading. Inside, prominent figures drop their guard and speak with unprecedented candidness about their trade.

Mr. Perez has recently been featured on CNBC, TheStreet.com and Channel NewsAsia, and engaged as speaker at Harvard Business School’s 17th Annual Venture Capital & Private Equity Conference, Columbia Business School’s Career Management Center and Alumni Club of New York, High-Frequency Trading Leaders Forum 2011, CFA Singapore, Hong Kong Securities Institute, News and Sentiment Trading, Waters USA 2011, among other prestigious global forums.

RSVP for High-Frequency Trading Happy Hour Chicago at http://hfthappyhourchicago.eventbrite.com.

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Edgar Perez, The Speed Traders, Keynote Speaker at High-Frequency Trading Leaders Forum 2011 Hong Kong, September 19-21

Posted on July 10, 2011. Filed under: Event Announcements, Flash Crash, Securities | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

Edgar Perez, The Speed Traders, Keynote Speaker at High-Frequency Trading Leaders Forum 2011 Hong Kong

Edgar Perez, The Speed Traders, presenting at Hong Kong Securities Institute

Edgar Perez, author of The Speed Traders: An Insider’s Look at the New High-Frequency Trading Phenomenon That is Transforming the Investing World (http://www.TheSpeedTraders.com), will give the keynote address at upcoming High-Frequency Trading Leaders Forum 2011 Hong Kong, “How Speed Traders Leverage Cutting-Edge Strategies in the Post-Flash Crash World”, September, 19-21, (http://www.HFTLeadersForum.com).

Edgar, who recently presented to a full room at the Hong Kong Securities Institute, is widely regarded as the pre-eminent networker in the specialized area of high-frequency trading. Edgar has recently been interviewed by CNBC Cash Flow (with Oriel Morrison), TheStreet.com (with Gregg Greenberg), Channel NewsAsia (with Lin Xue Ling), iMoney, Bloomberg, and Thomson Reuters, and engaged as speaker at Harvard Business School’s 17th Annual Venture Capital & Private Equity Conference, Columbia Business School’s Career Management Center and Alumni Club of New York, High-Frequency Trading Leaders Forum 2011, CFA Singapore, Hong Kong Securities Institute, News and Sentiment Trading, and Waters USA 2011, among other prestigious global forums.

Mr. Perez is one of the great business networkers and motivators on the lecture circuit; he is available worldwide for the following speaking engagements: Present and Future of High-Frequency Trading, The Real Story behind the “Flash Crash”, Networking for Financial Executives, and Business Networking for Success.

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Edgar Perez to Host Times Square Book Launch Party for The Speed Traders in New York City

Posted on July 7, 2011. Filed under: Event Announcements, Flash Crash, Technology | Tags: , , , , , , , , , , , , |

Edgar Perez, author of The Speed Traders, An Insider’s Look at the New High-Frequency Trading Phenomenon That is Transforming the Investing World, will host their Time Square-styled launch party on July 12, from 6:00 p.m. to 9:00 p.m., at The Living Room in the W Hotel in New York City. Guests are encouraged to RSVP at here. During the scheduled event, the author will be greeting guests and signing copies of The Speed Traders.

High-frequency traders have been called many things—from masters of the universe and market pioneers to exploiters, computer geeks, and even predators. Everyone in the business of investing has an opinion of speed traders, but how many really understand how they operate? The shadow people of the investing world, today’s high-frequency traders have decidedly kept a low profile—until now. In this new title, The Speed Traders, Mr. Perez, founder of the prestigious business networking community Golden Networking, opens the door to the secretive world of high-frequency trading (HFT). Inside, prominent figures of HFT drop their guard and speak with unprecedented candidness about their trade.

Mr. Perez has recently been featured on CNBC Cash Flow (with Oriel Morrison), TheStreet.com (with Gregg Greenberg) and Channel NewsAsia (with Lin Xue Ling), and engaged as speaker at Harvard Business School’s 17th Annual Venture Capital & Private Equity Conference, Columbia Business School’s Career Management Center and Alumni Club of New York, High-Frequency Trading Leaders Forum 2011, CFA Singapore, Hong Kong Securities Institute, News and Sentiment Trading, and Waters USA 2011, among other prestigious global forums.

Mr. Perez is one of the great business networkers and motivators on the lecture circuit; he is available worldwide for the following speaking engagements: Present and Future of High-Frequency Trading, The Real Story behind the “Flash Crash”, Networking for Financial Executives, and Business Networking for Success.

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Unfair to Blame High-Frequency Trading for Market Crashes, The Speed Traders’ Edgar Perez to CNBC’s Oriel Morrison

Posted on July 6, 2011. Filed under: Exchanges, Flash Crash, Practitioners, Technology | Tags: , , , , , , , , , , , , |

Edgar Perez, Author, The Speed Traders: An Insider’s Look at the New High-Frequency Trading Phenomenon That is Transforming the Investing World, spoke with CNBC Cash Flow’s Oriel Morrison about the criticism high-frequency trading has experimented since it started being covered by the mainstream media; the interview is available on CNBC’s website at http://video.cnbc.com/gallery/?video=2023403523.

Oriel Morrison with Edgar Perez

Oriel Morrison with Edgar Perez

CNBC’s Oriel Morrison, in particular, asked Mr. Perez his opinion regarding the criticism high-frequency trading has received. “Edgar, let’s take a look at some of the criticism because there has been a lot of controversy with kind of trading. Now, fairness has certainly been an issue that has been raised when it comes to this. Can there be fairness without transparency because with the speed of these trades, you simply you can’t get the transparency that you may well have if you have an institution putting on a big trade at any one point in time?”

Mr. Perez pointed out that some of the criticism is unfair and doesn’t address the right issues. “As I mention in my book, The Speed Traders, there has been a lot of criticism since 2009. And, I think that was influenced by the flash crash that happened last year. When that happened, people thought, ‘This is high-frequency traders. They are there in the market. They were not 10 years ago, so flash crashes didn’t happen before.’ But to be fair, we have market crashes all the time. We had the Great Depression. We had Black Monday. And, in those cases, you cannot say that high-frequency trading was prevalent. So, if you look at those occasions, long term investors are always the catalysts. Humans are very emotional and when they see bad news – and that’s what happened on May 6th – they will try to sell. Of course, computers in that day – May 6th – contributed to that decline in the markets in a very quick fashion. But at the same time, once the market came down, the market went up again very quickly because of computers. So, if you look at Black Monday, it took a month for the markets to recover. In this case, with the flash crash, it took 20 minutes for the market to recover. So, definitely, computers accelerate changes but it will be unfair to exclusively blame computers for this.”

The Speed Traders, http://www.TheSpeedTraders.com, published by McGraw-Hill Inc., is the most comprehensive, revealing work available on the most important development in trading in generations. High-frequency trading will no doubt play an ever larger role as computer technology advances and the global exchanges embrace fast electronic access. The Speed Traders explains everything there is to know about how today’s high-frequency traders make millions—one cent at a time.

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The Speed Traders’ Author, Edgar Perez, Presented to a Packed Room at Hong Kong Securities Institute

Posted on June 29, 2011. Filed under: Exchanges, Flash Crash, Practitioners, Securities, Technology | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

The Speed Traders' Author, Edgar Perez, Presented to a Packed Room at Hong Kong Securities Institute

Edgar Perez, Author, The Speed Traders, at Hong Kong Securities Institute

Edgar Perez, Author, The Speed Traders, presented to a packed room of almost 200 attendees at the Hong Kong Securities Institute (http://www.hksi.org/eng/membership/event/m062811ps.html), professional body that aims to raise the standards of securities and finance practitioners in Hong Kong, on The Present and Future of High-Frequency Trading.

Mr. Perez described high-frequency trading as the natural progression of technology applied to the investing and trading worlds. In the process, high-frequency trading has certainly unmasked structural issues in the U.S. equity markets that are currently being examined by legislators and regulators in an effort to further strengthen financial markets. He indicated that, on balance, the impact of high-frequency trading is positive for all other market participants thanks to the increased liquidity it provides to retail and institutional investors.

The Hong Kong Securities Institute was officially formed in December 1997 as a professional body to raise the standards of securities and finance practitioners in Hong Kong. In setting standards for professional excellence in Hong Kong, the Hong Kong Securities Institute offers a platform where individuals can gain the skills, and achieve the necessary professionalism and personal competence as they proceed towards further career advancement. The Hong Kong Securities Institute provides continuous professional development by offering comprehensive examinations and an extensive programme of training courses and events. Finance professionals benefit from Hong Kong Securities Institute membership programme which provides invaluable support and professional recognition from industry peers.

The Speed Traders, published by McGraw-Hill Inc., is the most comprehensive, revealing work available on the most important development in trading in generations. High-frequency trading will no doubt play an ever larger role as computer technology advances and the global exchanges embrace fast electronic access. The Speed Traders explains everything there is to know about how today’s high-frequency traders make millions—one cent at a time.

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The Speed Traders’ Edgar Perez to CNBC’s Oriel Morrison, Criticism of High-Frequency Trading Phenomenon Unfair

Posted on June 24, 2011. Filed under: Event Announcements, Exchanges, Flash Crash, Practitioners, Technology | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

The Speed Traders' Edgar Perez to CNBC's Oriel Morrison, Criticism of High-Frequency Trading Phenomenon Unfair

The Speed Traders' Edgar Perez to CNBC's Oriel Morrison, Criticism of High-Frequency Trading Phenomenon Unfair

Edgar Perez, author, The Speed Traders: An Insider’s Look at the New High-Frequency Trading Phenomenon That is Transforming the Investing World, explained in detail the role high-frequency trading has been playing in the equity markets to CNBC Cash Flow’s Oriel Morrison; the interview is available on CNBC’s website at http://video.cnbc.com/gallery/?video=2023403523. High-frequency trading, in which computers may buy and sell thousands of shares in fractions of a second, had come under criticism after the Dow Jones Industrial Average lost almost 1,000 points intraday on May 6, 2010, before recovering just as quickly.

Mr. Perez described high-frequency trading as the natural progression of technology applied to the investing and trading worlds. In the process, high-frequency trading has certainly unmasked structural issues in the U.S. equity markets that are currently being examined by legislators and regulators in an effort to further strengthen financial markets. He indicated that, on balance, the impact of high-frequency trading is positive for all other market participants thanks to the increased liquidity it provides to retail and institutional investors.

High-frequency traders replace traditional specialists in providing liquidity in a much more competitive frame work. Liquid and efficient capital markets are extremely important for economic development. While some feel that high-frequency traders spending millions of dollars on infrastructure to be a few microseconds faster than the other guy, is somehow, from a social perspective, not money “well spent”, it can be argued that this is just the way that competitive markets find equilibrium.

The Speed Traders: An Insider's Look at the New High-Frequency Trading Phenomenon That is Transforming the Investing World

The Speed Traders: An Insider's Look at the New High-Frequency Trading Phenomenon That is Transforming the Investing World

As expressed by Stuart Theakston, Head of Quantitative Research and Automated Trading  with GLC and one of the practitioners featured in The Speed Traders, high-frequency trading has all the attributes required to make a perfect scapegoat:

  • It is hard to understand, or at least, it takes a bit of effort to understand (even professional long-only institutional investors have difficulty understanding it)
  • It is fairly exclusive, as the firms involved, either have no incentive to talk about what they do (because they are proprietary trading firms and don’t need to attract external capital), or are not allowed to (because they are hedge funds and have regulatory constraints on marketing themselves)
  • It employs individual participants having very high levels of academic qualifications, mostly PhDs
  • It has some large dollar numbers associated with it (though more in terms of turnover than profitability, as further detailed in The Speed Traders)
  • It has lots of terminology associated with it that sounds geeky and confusing to the uninitiated: ‘microsecond’, ‘co-location’, ‘momentum ignition’, ‘temporal arbitrage’ etc.
  • Some intelligent, well informed and eminently quotable people are railing against it (Mario Gabelli, Paul Wilmott, Richard Bookstaber, among others)
  • It is prone to occasionally be a contributory factor (or, in fact, its switching off was a contributory factor) to events perceivable by the public, like the “flash-crash”

The Speed Traders, http://www.TheSpeedTraders.com, published by McGraw-Hill Inc., is the most comprehensive, revealing work available on the most important development in trading in generations. High-frequency trading will no doubt play an ever larger role as computer technology advances and the global exchanges embrace fast electronic access. The Speed Traders explains everything there is to know about how today’s high-frequency traders make millions—one cent at a time.”

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The Present and Future of High-Frequency Trading at CFA Singapore, June 21st

Posted on June 6, 2011. Filed under: Event Announcements, Flash Crash, Strategies | Tags: , , , , , , , , , , , , , |

The Speed Traders, An Insider's Look at the New High-Frequency Trading Phenomenon That is Transforming the Investing WorldEdgar Perez, Author, The Speed Traders, http://www.TheSpeedTraders.com, will host a lunch presentation at CFA Singapore, professional society that brings together practitioners in the investment and fund management industry, June 21, on The Present and Future of High-Frequency Trading.

High-Frequency Trading is a set of tools that encompasses a rather diverse number of strategies that prioritize speed, low-latency, volume, liquid instruments and short timeframes. According to Mr. Perez, High-Frequency Trading has been referred to as the natural progression of technology applied to the investing and trading worlds. In the process, High-Frequency Trading has unmasked structural issues in the U.S. equity markets that are currently being examined by legislators and regulators. Ultimately, speed traders will continue finding alpha-generating opportunities by trading new asset classes in new geographies employing more sophisticated tools than ever.

Established in September 1987, CFA Singapore (formerly known as the Singapore Society of Financial Analysts -SSFA) is a professional society that brings together practitioners in the investment and fund management industry in Singapore. Its principal objective is to promote and uphold professional standards and ethical practice in financial analysis and investment management in Singapore. Founded in September 1987, CFA Singapore is the first CFA Member Society of CFA Institute outside North America. The Society runs a whole host of programs for members, CFA candidates and also the investment community, including Professional Development talks and seminars, Networking sessions, CFA information sessions and examination review classes, and Career Development talks.

The Speed Traders, http://www.TheSpeedTraders.com, published by McGraw-Hill Inc., is the most comprehensive, revealing work available on the most important development in trading in generations. High-frequency trading will no doubt play an ever larger role as computer technology advances and the global exchanges embrace fast electronic access. The Speed Traders explains everything there is to know about how today’s high-frequency traders make millions—one cent at a time.”

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Golden Networking Announces Edgar Perez, Author, The Speed Traders, at High-Frequency Trading Leaders Forum 2011

Posted on May 16, 2011. Filed under: Book Review, Event Announcements, Flash Crash | Tags: , , , , , , , , , , , , , , , , |

Edgar Perez, Author, The Speed Traders: An Insider’s Look at the New High-Frequency Trading Phenomenon That is Transforming the Investing   WorldGolden Networking has announced that Edgar Perez, Author, The Speed Traders, will present at their High-Frequency Trading Leaders Forum 2011, “How Speed Traders Leverage Cutting-Edge Strategies in the Post-Flash Crash World”, May 23, 24 & 25 in New York City. Mr. Perez will discuss “The Present and Future of High-Frequency Trading”.

High-frequency traders have been called many things—from masters of the universe and market pioneers to exploiters, computer geeks, and even predators. Everyone in the business of investing has an opinion of speed traders, but how many really understand how they operate? In his new title, The Speed Traders, Mr. Perez opens the door to the secretive world of high-frequency trading (HFT). Inside, prominent figures of HFT drop their guard and speak with unprecedented candidness about their trade.

Mr. Perez is widely regarded as the pre-eminent networker in the specialized area of high-frequency trading. He is host of High-Frequency Trading Happy Hour business receptions in New York City, which have drawn the world’s top industry practitioners. He has organized high-frequency trading forums and workshops, as well as conferences on subjects as diverse as hedge funds, derivatives, private equity, distressed investing, and China, in the world’s major business centers. Mr. Perez has presented at Harvard Business School’s 17th Annual Venture Capital & Private Equity Conference and at forums organized by Columbia Business School’s Career Management Center and Alumni Club of New York.

For more information about High-Frequency Trading Leaders Forum 2011, visit Golden Networking‘s website or send an email to info@goldennetworking.net.

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Book Review: ‘The Speed Traders’, by Seeking Alpha’s Brenda Jubin

Posted on May 5, 2011. Filed under: Book Review, Flash Crash, Practitioners | Tags: , , , , , , , , , , , , , , , , |

High-frequency trading has mesmerized people in search of easy money, has challenged regulators, and has been an easy target for the press. In The Speed Traders: An Insider’s Look at the New High-Frequency Phenomenon That Is Transforming the Investing World(McGraw-Hill, 2011) Edgar Perez tries to set the record straight. Alternating between an annotated timeline of the development of high-frequency trading and interviews with top high-frequency traders, Perez illuminates the world of speed.”

The Speed Traders: An Insider’s Look at the New High-Frequency Trading Phenomenon That is Transforming the Investing World“We normally think of high-frequency trading as super-fast order processing, measured in microseconds. And, yes, it is. But a traders’s data feed (whether market quotes or news feed) also has to be lightning fast, as does his database management system.”

Perez explores the charges that have been brought against high-frequency trading and for the most part, with the help of his interviewees, tries to dispel them. Did high-frequency trading cause the Flash Crash? No. As David Cummings, chairman of Tradebot Systems, wrote: ‘Who puts in a $4.1 billion order without a limit price? The trader at Waddell & Reed showed historic incompetence.'”

“Some traders also point the finger at the practice of busting trades, which can punish liquidity providers. The Speed Traders offers a sympathetic portrait of an industry that is often demonized. By tracing its roots (going back to Instinet, which began operating under an unwieldy name in 1970), Perez demonstrates it to be a logical development of technological change in the financial markets. By separating out some controversial practices, such as flash orders, from high-frequency trading, Perez makes it more defensible. All in all, an enlightening book.”

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The Real Story Behind the Flash Crash in ‘The Speed Traders’, The Most Comprehensive Book on High-Frequency Trading

Posted on May 3, 2011. Filed under: Exchanges, Flash Crash, Practitioners | Tags: , , , , , , , , , , , , |

The Real Story Behind the Flash Crash at 'The Speed Traders', The Most Comprehensive Book on High-Frequency Trading

The Speed Traders: An Insider's Look at the New High-Frequency Trading Phenomenon That is Transforming the Investing World

The real story behind the flash crash, the sudden decline and ultimate recovery of the U.S. financial markets on May 6, 2010, is described in unprecedented detail in The Speed Traders, An Insider’s Look at the New High-Frequency Trading Phenomenon That is Transforming the Investing World (http://www.thespeedtraders.com), book by recognized author Edgar Perez.

Building on interviews with influential high-frequency traders that experienced the flash crash first-hand, Mr. Perez has been able to build a narrative that captures the readers’ attention. Referring to Manoj Narang, Chief Executive Officer of Tradeworx, the book says: “As early as May 7, 2010, it was pretty apparent to him what had happened. Investors were on hair-trigger alert because of a huge run-up (around 70 percent in 12 months) in stock prices, because of recent weakness (down around 7 percent for the week before May 6), and because of geopolitical events, particularly the threat that Greece and other European nations would default on their sovereign debt. Into this economic backdrop a mutual fund dumped around $4 billion worth of Standard & Poor’s (S&P) E-Mini futures contracts into the open market, setting off a self-reinforcing wave of selling. Mr. Narang has calculated that the mutual fund’s trade had a likely impact of about 3 percent on the S&P 500 Index’s price over the course of a few minutes. This was a rather large impact, particularly at a time when the market was already spooked. Thus a snowball quickly turned into an avalanche as investors’ stop-loss orders were repeatedly set off at lower and lower levels.”

The book explains that no matter what regulators do as part of liquidity obligations, no matter how much they force people to stay in the market, there will be times when herd like behavior among long-term investors will see them all stampeding for the exits at the same time; there simply won’t be enough high-frequency trading to cover the demand for liquidity. Liquidity crises are not driven by the lack of liquidity but by the demand for liquidity. This is why Mr. Narang thinks that it is a bit misguided on the part of regulators to try to prevent flash crashes from occurring. In order to prevent liquidity crises from occurring, regulators would need to prevent herd like behavior among long-term investors, because that’s what causes bubbles and that’s what causes liquidity crises.

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Book Launch Party for “The Speed Traders” on May 10, W Hotel in New York City

Posted on May 1, 2011. Filed under: Event Announcements, Flash Crash, Practitioners | Tags: , , , , , , , , , , , , , , , , , , , , , |

The New York City book launch party for “The Speed Traders, An Insider’s Look at the New High-Frequency Trading Phenomenon That is Transforming the Investing World”, by Edgar Perez, will be held on May 10th, 2011, at 6:00 p.m., at the Whiskey Blue in the W Hotel. Guests are encouraged to RSVP at http://thespeedtradersnyc.eventbrite.com.

High-frequency traders have been called many things—from masters of the universe and market pioneers to exploiters, computer geeks, and even predators. Everyone in the business of investing has an opinion of speed traders, but how many really understand how they operate? The shadow people of the investing world, today’s high-frequency traders have decidedly kept a low profile—until now. In this new title, The Speed Traders, Edgar, founder of the prestigious business networking community Golden Networking (http://www.goldennetworking.net), opens the door to the secretive world of high-frequency trading (HFT). Inside, prominent figures of HFT drop their guard and speak with unprecedented candidness about their trade.

Edgar begins with an overview of computerized trading, which formally began on February 8, 1971, when NASDAQ launched the world’s first electronic market with 2,500 over-the-counter stocks and which has evolved into the present-day practice of making multiple trades in a matter of microseconds. He then picks the brains of today’s top players. Manoj Narang (Tradeworx), Peter van Kleef (Lakeview Arbitrage), and Aaron Lebovitz (Infinium Capital Management) are just a few of the luminaries who decided to break their silence and speak openly to Edgar. Virtually all of the expertise available from the world of speed trading is packed into these pages.

The Speed Traders, published by McGraw-Hill Inc., is the most comprehensive, revealing work available on the most important development in trading in generations. High-frequency trading will no doubt play an ever larger role as computer technology advances and the global exchanges embrace fast electronic access. The Speed Traders explains everything there is to know about how today’s high-frequency traders make millions—one cent at a time.

Mr. Perez is widely regarded as the pre-eminent networker in the specialized area of high-frequency trading. He is the founder of Golden Networking and host of High-Frequency Trading Happy Hour business receptions (http://www.hfthappyhour.com) in New York City, which have drawn the world’s top industry practitioners. He has organized high-frequency trading forums (http://www.hftleadersforum.com) and workshops (http://www.hftexpertsworkshop.com), as well as conferences on subjects as diverse as hedge funds, derivatives, private equity, distressed investing, and China, attracting thousands of executives and professionals in the world’s major business centers. Mr. Perez has presented at Harvard Business School‘s 17th Annual Venture Capital & Private Equity Conference and at forums organized by Columbia Business School‘s Career Management Center and Alumni Club of New York.

Mr. Perez was a vice president at Citigroup, a senior consultant at IBM, and a consultant at McKinsey & Co. in New York City. Mr. Perez has an undergraduate degree from Universidad Nacional de Ingeniería, Lima, Peru (1994), a Master of Administration from Universidad ESAN, Lima, Peru (1997) and a Master of Business Administration from Columbia Business School, with a dual major in Finance and Management (2002). He is a member of the Beta Gamma Sigma international honor society. Mr. Perez resides in the New York City area and is an accomplished salsa and hustle dancer.

Mr. Perez is one of the great business networkers and motivators on the lecture circuit; he is available worldwide for the following speaking engagements: Present and Future of High-Frequency Trading, The Real Story behind the “Flash Crash”, Networking for Financial Executives, and Business Networking for Success.

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