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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Yuri Milner’s Wishful Thinking? Facebook, Google and Wikipedia Will Stay Dominant For Only 10 Years

Posted on March 10, 2013. Filed under: Companies, Economy, Private Equity, Technology, Venture Capital | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

Yuri Milner, co-founder and chief executive officer of DST

Yuri Milner, co-founder and chief executive officer of DST (Photo: Forbes)

In an interview at the South by Southwest Interactive conference in Austin, Texas, Yuri Milner, the Russian investor whose early bet on Mark Zuckerberg’s firm made him a billionaire, said companies like Facebook, Google and Wikipedia will still exist a century from now because their services gain momentum the more people use them. “All three have amazing network effects,” said Milner, the co-founder and chief executive officer of DST. “Chances are that those are long survivors.”

Milner has long believed that the internet would develop into a “global brain”, which is often described as an intelligent network of individuals and machines, functioning as a nervous system for the planet Earth. He also has envisaged that the advent of the Internet of things and ever increasing use of social media and participatory systems such as Twitter, Facebook, and Wikipedia would increase our collective intelligence.

Richard Foster, the Creative Destruction author referred by Forbes as The Wizard of Innovation and speaker at China Leaders Forum, was in the 80s in a search for “the excellent company”, the all-seeing, all-knowing, all-wise company that made all the right moves in advance, and that made more money for its shareholders than any of its competitors. This was the permanent outperformer stock, the really good deal, he said. Foster looked at 4,000 companies over 40 years; he concluded there was no such company, and there never had been such a company! No company had been able to outperform the market for any substantial length of time. (GE once came as close as any, but didn’t do any better than the overall market index, Foster reflects). Somehow the market, managed by nobody in particular, was performing better than all the brains on the planet.

Why is it that no company can outperform the markets for a long time? Foster thinks there are several reasons, but the most important is something called legacy cost. All companies have legacy costs, which are created the moment a company makes a commitment of time or resources to a particular course of action. And when a company is challenged to do something new, to take a new course of action, it has a hard time abandoning its legacy costs. Companies argue that the incremental cost of making a slight improvement to an existing product or service is much better than the full cost of developing something new from scratch. In doing so, the company attempts to optimize between the old and the new. This takes the decision making power away from the customer, and it’s a bad direction to go in. Markets, however, just charge on ahead with the new, because new entrants don’t have any legacy costs to deal with.

Just last week, Facebook’s new News Feed made some welcome cosmetic changes. But it didn’t go very far in addressing the social network’s deeper issues. Fortune’s Kevin Kelleher talks about the vulnerabilities Facebook is facing since it went public. Facebook is facing more powerful competitors and two important yet sometimes contradictory mandates, to create a service that will engage its users, and to make money that will satisfy investors; Facebook’s presentation played down those facts. How intrusive these ads strike users will depends on the algorithms Facebook designs to insert them in feeds.

So while Facebook’s new news feed makes some cosmetic fixes that users are likely to welcome in time, they don’t go very far in addressing rising competition from newer social networks and the uneasy balancing act between users and advertisers. Those are the legacy costs Foster refers too, which new entrants that will grow into becoming new leaders never face. Legacy costs never stopped Wikipedia and Google from dethroning leading institutions called Britannic Encyclopedia and Yahoo!

To think that new companies will take a century to remove Facebook, Wikipedia or Google from their leadership positions is no more than wishful thinking; these firms have at most 10 years to milk their cows and make the big decision: change or die. While Milner appears not to have a vested interest in Wikipedia or Google, he might as well start cashing in on his already wildly profitable Facebook bet. Somebody in some garage is already building a better mousetrap.

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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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高频交易是否问题的根源?

Posted on February 6, 2013. Filed under: Debt Ceiling, Economy, Financial Crisis, Fiscal Cliff, Securities, Securities and Exchange Commission | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

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

“高频交易”(High-frequency Trade),是指大型投资机构利用自己的高速计算机,在极短时间内判断出有价值的信息,从而先于市场的其他投资者进行交易,这种交易的特点是大量不停地买卖。

文/新浪财经北美特约撰稿人埃德加-佩雷兹[微博]

2010年5月的“闪电崩盘”及Facebook在骑士资本和纳斯达克的IPO交易故障等事件,都被错误地与高频交易联系到一起,被描绘为对普通投资者造成灵魂冲击。但真正原因是经济健康问题。It is the economy, stupid。这个短语仍旧有效。

除了与最近一次金融危机有关的记忆以及有关股票市场安全性和公平性的疑问以外,2010年5月份的“闪电崩盘”及Facebook在骑士资本和纳斯达克市场上令人感到非常沮丧的IPO(首次公开招股)交易故障等事件都被错误地与高频交易联系到一起,被描绘为对普通投资者造成了灵魂冲击。

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The Perennial Profit Challenge: 2013 Roadmap for World Exchanges

Posted on December 16, 2012. Filed under: Exchanges, Practitioners, Regulations, Securities and Exchange Commission, Technology | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

Edgar Perez and Sir Richard Branson

Edgar Perez and Sir Richard Branson

Financial exchanges play a vital role in economic development as one of the primary tools for the allocation of capital in both developed economies and emerging ones. The indices created using the platforms provided by global exchanges are used by the financial services industry and the government as barometers of economic health and a predictor of national financial well-being.

However, the exchanges model has changed dramatically over the past decade starting with demutualization. The first wave began with the Stockholm Stock Exchange (STO) in 1993 and included the Bombay Stock Exchange (BSE) in 1995 and Borsa Italiana (BVME) in 1997. Demutualization was followed by a second stage in which a number of exchanges became publicly traded and profit-seeking companies listed on their own platform, with the Australian Securities Exchange (ASX) being the first to follow this model in 1998. Such restructurings are still taking place in exchanges all over the world.

Exchanges have come under increasing regulatory attention. In the US, for instance, the Securities and Exchange Commission is expanding an enforcement probe into a broader look at how exchanges develop new products, communicate with investors and provide incentives to trade; this was sparked partly by an SEC probe into trading order types apparently benefiting high-speed traders, whose activity comprises more than half of all stock-trading volume.

As companies exercise more flexibility in seeking to raise capital outside their national boundaries, the environment has become even more competitive for exchanges. Furthermore, they are hugely capital intensive (mostly due to the IT infrastructure required for increasingly high frequency trading), reason why some exchanges are looking to grow through acquisitions in order to enjoy greater economies of scale.

While these challenges are common to exchanges worldwide, the impact on their bottom lines has been rather diverse. For instance, the Philippines Stock Exchange (PSE) doubled its profit in the first nine months of 2012 compared to last year. While the exchange benefited tremendously from the favorable economic environment and sky-high optimism in the country, there were a number of reforms implemented by the PSE, including the rollout of a new trading system, extension of trading hours and implementation of multiple regulatory and governance enhancements.

London Stock Exchange (LSE) reported a profit for the first half of the year nearly unchanged from last year as strong performance in information services helped offset weak capital markets. The exchange highlighted the benefits of its increasingly diversified international group and the growth from its Information, Post Trade and Technology businesses; the exchange reported a 66 percent increase in Information Services revenue, while Capital Markets revenue dropped 19 percent.

On the other side of the spectrum, NYSE Euronext, the operator of the New York Stock Exchange and other stock exchanges, announced that its third-quarter profit fell 46 percent, which the company attributed to reduced average daily trading volumes, primarily related to its derivatives business. It said its results last year were helped by the extreme volatility of the markets in Europe and the United States due to debt concerns. Certainly, volatility has declined considerably since then, reaching multi-year lows in August 2012.

Exchanges are responding to this increasing competition in a number of ways. Negotiating mergers has been the first option considered by a number of companies, only to be derailed in some cases by regulators or rebuffed by targets. NYSE Euronext face resistance from European regulators on its proposed combination with Deutsche Boerse; ASX’s agreement with Singapore Exchange (SGX) fell through as well; LSE dropped its bid for Toronto Stock Exchange (TSX) after its owners spurned them in favor of the bid from a group of Canadian banks and pensions. However, that doesn’t mean that exchanges will not attempt to find combinations that don’t run afoul of regulations, just because mergers almost in all cases strive to provide an avenue to widen their business model and to exploit economies of scale, economies of network, cross selling opportunities and trading hours; for instance in Asia, Tokyo and Hong Kong shortened their midday halt to one hour last year, while Singapore scrapped its lunch break altogether, joining Australia, South Korea and India on the list of exchanges that have uninterrupted trading days.

Second, developing cutting edge-edge technology and its further commercialization is paving the way to extract additional profits from investments already paid. For instance, LSE leveraged its IT investments with the adoption of an outsourced managed services model that allowed the exchange to run other exchanges, such as the Johannesburg Stock Exchange, using its own platform. Building a major technology franchise through outsourcing was vital for the LSE if it was to continue to compete with the likes of NYSE Euronext and Nasdaq OMX, which had extended their brand and influence in several emerging markets through major technology deals.

Finally, exchanges are standing up to the challenge of diversifying their business model. Exchanges that were primarily focused on cash trading decided to integrate services such as the trading of derivative financial instruments markets. As it was the case for LSE, information services delivered in machine-readable format are providing growth opportunities for exchanges worldwide; RapiData, company acquired by Nasdaq OMX, enabled the company to deliver U.S. government and other economic news directly from the source to customers interested in receiving information in an electronic feed, giving them instant access to events that are incorporated into algorithmic trading systems. The perennial appetite of high-frequency and algorithmic trading firms for faster access to trading data is also encouraging exchanges to provide colocation services that bring all participants equal access to their matching engines. Ultimately, exchanges will be forced to explore all upstream and downstream opportunities in the production chain of the exchange industry, from the above mentioned information services upstream to the integration of clearing and settlement services downstream.

Revenues at exchanges will need to evolve from its reliance on volume-dependent fees and commissions for a range of activities (including trading, listing, clearing, settlement, depository, custody and nominee services) to uncorrelated income sources that might not have existed just a few years ago; the infrastructure they have, the data they manage and proximity to their matching engine are all key assets that need to be fully exploited if exchanges are to succeed in 2013 and beyond.

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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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High-Frequency Strategists and Quants on Red Alert: The Speed Traders Workshop 2012 in Chicago

Posted on October 2, 2012. Filed under: Conference, Event Announcements, Practitioners, Strategies, Technology, Workshop | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

The Speed Traders Workshop 2012, How High Frequency Traders Leverage Profitable Strategies to Find Alpha in Equities, Options, Futures and FXIt took some time, but finally it is now a reality. The Speed Traders Workshop 2012 Chicago, October 9, will finally open the door to the secretive world of high-frequency trading, the most controversial form of investing today; in the name of protecting the algorithms traders and quants had spent so much time perfecting, they almost never talked to the press and disclosed as little as possible about how they operate.

The Speed Traders Workshop 2012 Chicago promises to 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 Flash Crash, the suspended BATS IPO, the botched Facebook IPO and Knight Capital’s trading malfunction  are just a few of the events in the history of high-frequency trading that will be dissected at The Speed Traders Workshop 2012.

Who should attend? Anybody involved with Algorithmic Trading, Automated Trading, Commodities, Commodities Trading, Credit Derivatives, Dark Pools Trading, Data Monitoring / Analysis, DMA Analysts, Derivatives Trading, Electronic Execution, Electronic Trading, Equity Trading, Exchange-Traded Instruments, Family Offices, Financial Engineering, Fixed Income / Currencies Trading, Futures, Hedge Funds Traders and Managers, High-Frequency Trading, Information Technology, Institutional Investors, Investment Banking, Market Makers, Operations, Options, Over-the-counter Derivatives, Portfolio Management, Proprietary Trading, Quantitative Trading, Regulatory Entities, Risk Management, Analysis and Control, Statistical Arbitrage, Structured Products Hedging and Trading Technology.

After Hong Kong, Sao Paulo, Kuala Lumpur, Seoul, Warsaw, Kiev, Beijing and Shanghai, Chicago finally has the opportunity to experience first-hand The Speed Traders Workshop 2012, seminar that will satisfy both insiders and professionals who are new to the world of high-frequency trading.

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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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High-Frequency Trading World’s Capital Moving to China with The Speed Traders Workshop 2012 Shanghai and Hong Kong

Posted on July 26, 2012. Filed under: Conference, Event Announcements, Exchanges, Practitioners, Regulations, Strategies, Workshop | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

2012国际高频交易高峰研讨会・上海 - The Speed Traders Workshop 2012 Shanghai, China: How High Frequency Traders Leverage Profitable Strategies to Find Alpha in Equities, Options, Futures and FX, with author Mr. Edgar Perez

2012国际高频交易高峰研讨会・上海

The high-frequency trading world’s capital is moving to China this August with Mr. Edgar Perez, author of The Speed Traders, and former McKinsey & Co. consultant and New York University Adjunct Professor, presenting The Speed Traders Workshop 2012: How Algorithmic and High Frequency Traders Leverage Profitable Strategies to Find Alpha in Equities, Options, Futures and FX, in Shanghai and Hong Kong.

Top securities firms and traders from China, Hong Kong and Singapore trading at Zhengzhou Commodity Exchange (ZCE), Shanghai Stock Exchange (SSE), Dalian Commodity Exchange (DCE), Shanghai Futures Exchange (SHFE), Hong Kong Stock Exchange (HKEx), and Singapore Stock Exchange (SGX), are joining these enlightening workshops, which display an agenda full of information and insights, as can be seen through the following sessions:

1.      Understanding High Frequency Trading in Equities and other Asset Classes

  • 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

2.      Key Enablers for High Frequency Trading

  • Technological innovation: computing power, complex event processing, and low-latency bandwidth
  • Shift to electronic trading and the rise of alternative trading systems
  • In-depth look at strategies high frequency traders leverage to find alpha in equities, options, futures and FX
  • The profitability of typical high frequency trading strategies and its evolution

3.      Global Regulatory Overview: from the U.S. and Europe to China and Brazil

  • Regulations in place before the “flash crash”
  • Proposed regulatory initiatives after the “flash crash” in the U.S. and Europe, circuit breakers, limit up limit down and consolidated audit trail
  • High frequency trading in Asia, from Japan, Singapore and India to Hong Kong and China
  • Regulating speed trading to samba beats: Brazil and Mexico

4.      The Future of High Frequency Trading

  • Enhancing profitability: from equities to FX to cross-asset trading
  • High frequency trading in the world: from the U.S. and Europe to China and Brazil
  • Adding ammunition to the high frequency trader toolkit, FPGA, GPUs and enhanced technologies
  • Turning the tables on high frequency trading: the transparency challenge for the buy-side

Mr. Perez has been interviewed on CNBC Cash Flow, CNBC Squawk Box, BNN Business Day, CCTV China, Bankier.pl, TheStreet.com, Leaderonomics, GPW Media, Channel NewsAsia Business Tonight and Cents & Sensibilities. In addition, Mr. Perez has been featured on Caixin, Futures Daily, Xinhua, CBN Newswire, Chinese Financial News, ifeng.com, International Finance News, hexun.com, Finance.QQ.com, Finance.Sina.comThe Korea Times, The Korea Herald, The Star, BMF 89.9, iMoney Hong Kong, CNBC, Bloomberg 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.

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Caixin Media Covers The Speed Traders Workshop 2012 in China

Posted on June 14, 2012. Filed under: Exchanges, Operations, Practitioners, Private Equity, Securities, Strategies | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

The Speed Traders Workshop 2012

2012年6月第二个交易日,上证指数因为特殊的波动引发市场关注。来自监管当局的消息称,交易所已经注意到了市场中的高频交易,但未发现有市场操纵行为。

将通过计算机控制的高频交易(High-frequency Trading,简称HFT)行为与人为的操纵市场联系到一起引人无限遐思。高频交易到底是加剧市场波动还是缩短市场波动?如何监管高频交易?是否应该像 对“粮仓中的老鼠”一样,限制高频交易?这都是摆在全球监管者面前的一道难题。尤其对于散户众多的中国证券市场,高频交易又会成为何种角色?

“美国各界仍在争论,焦点是该不该对高频交易有限制,高频交易到底是利大于弊还是弊大于利。”纽约华尔街一家全球宏观型对冲基金数量交易组的数量投资经理杨旭对财新记者表示。

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The Speed Traders Workshop 2012: News Coverage From China Business Network (CBN)

Posted on June 13, 2012. Filed under: Economy, Exchanges, Operations, Practitioners, Private Equity, Regulations, Securities, Strategies | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

Mr. Edgar Perez, Director of The Speed Traders Workshop

Edgar Perez援引数据介绍指出,目前在美国证券市场中的整体成交金额中有56%来自高频交易,而这种交易手法也是伴随着科技的发展、市场的竞争、以及监管政策的变化,在证券市场中自然演进所出现的。

频交易研究专家Edgar Perez近日在与第一财经采访时表示,高频交易是一种专注于“速度(speed)”的投资方法,主要以先进的电脑技术和设备寻求在极短时间内的获利,然 而这种投资方法与巴菲特的“价值投资”哲学并不矛盾,亦有助投资者能跳出经济周期和宏观大环境的制约,寻找到不为外界环境所左右的“阿尔法”值(即超出市 场基准的收益回报)。

Edgar Perez援引数据介绍指出,目前在美国证券市场中的整体成交金额中有56%来自高频交易,而这种交易手法也是伴随着科技的发展、市场的竞争、以及监管政策的变化,在证券市场中自然演进所出现的。

高频交易主要以电脑完成交易,数据处理可以在毫秒(0.001秒)之间,人力根本无法与之匹配,因此该种交易主要依赖先进的科学技术和电脑算法。高频交易的主要策略包括电子化交易、趋势追踪、相对价值套利、流动性监测、新闻解读分析和投资基金方法等。

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The Speed Traders Workshop 2012 Shanghai at Hult International Business School

Posted on June 3, 2012. Filed under: Economy, Event Announcements, Exchanges, Fixed Income, Practitioners, Private Equity, Securities, Strategies, Technology | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

Mr. Edgar Perez, Author of          The Speed Traders

Edgar Perez, Author, The Speed Traders, Speaker at The Speed Traders Workshop 2012 Shanghai: How Algorithmic and High Frequency Traders Leverage Profitable Strategies to Find Alpha in Equities, Options, Futures and FX, June 6

New York, NY, May 26, 2012 — Edgar Perez will be the presenter at upcoming The Speed Traders Workshop 2012 Shanghai: How Algorithmic and High Frequency Traders Leverage Profitable Strategies to Find Alpha in Equities, Options, Futures and FX, June 6, to be held at Hult International Business School’ Shanghai campus.

Hult International Business School (formerly known as the Arthur D. Little School of Management) is a top business school with campuses in Boston, San Francisco, London, Dubai and Shanghai. It offers a range of business-focused degree programs including MBA, Executive MBA, Master and Undergraduate degrees. Hult is affiliated with the privately held company EF Education First and is named for EF’s founder, Bertil Hult. The school is incorporated as Hult International Business School, Inc., which is a not-for-profit organization incorporated under Massachusetts law.

Hult has a list of faculty which is on par with other business schools, and includes many faculty members from colleges in the northeast of the USA. Some of the Hult faculty also teaches at Babson College, Harvard, INSEAD and other business schools.

Hult organizes the Hult Global Case Challenge, an annual international case competition that takes on global social challenges by generating ideas and solutions from students from around the world. The organization is a member of the Clinton Global Initiative. At the event, student teams of five from business schools from around the world are invited to participate at one of five international locations where teams compete to develop the best solutions around the proposed challenge area. Cities of competition include Boston, San Francisco, London, Dubai and Shanghai, where The Speed Traders Workshop 2012 will be held.

Mr. Perez, 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, 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.

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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Miss It at Your Own Risk: World’s Only High Frequency Trading Seminar, Now in China

Posted on June 1, 2012. Filed under: Economy, Event Announcements, Exchanges, Fixed Income, Practitioners, Private Equity, Securities, Strategies, Technology | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

The Speed Traders Workshop 2012

Edgar Perez, Author, The Speed Traders, Speaker at The Speed Traders Workshop 2012: How Algorithmic and High Frequency Traders Leverage Profitable Strategies to Find Alpha in Equities, Options, Futures and FX, Shanghai (June 6)

Mr. Edgar Perez, author, The Speed Traders, and former McKinsey & Co. consultant, is leading the world’s only high frequency trading seminar, aptly called The Speed Traders Workshop 2012: How Algorithmic and High Frequency Traders Leverage Profitable Strategies to Find Alpha in Equities, Options, Futures and FX, for the first time in China.  The Speed Traders Workshop will next take place in Shanghai on June 6.

Mr. Edgar Perez is widely regarded as the preeminent speaker 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) in English and China Financial Publishing House (2012) in Chinese. In addition, Mr. Edgar Perez is course director of The Speed Traders Workshop 2012, How Algorithmic and High Frequency Traders Leverage Profitable Strategies to Find Alpha in Equities, Options, Futures and FX (Hong Kong, Sao Paulo, Seoul, Kuala Lumpur, Warsaw and Kiev).

Mr. 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, FIXGlobal Trading, TODAY Online, Oriental Daily News and Business Times.

In the last months, Mr. Edgar 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. Edgar 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 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 kicks off a series of presentations in the world’s most important financial centers: Jakarta, Indonesia, June 13; Mexico City, Mexico, July 27; Hong Kong, August 4, and Moscow, Russia, August 10.

Mr. Edgar Perez is one of the great business networkers and motivators on the business 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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Trying to Blame High-frequency Trading for Facebook’s Nasdaq IPO Eclipse? Look Elsewhere

Posted on May 21, 2012. Filed under: Economy, Exchanges, Regulations, Securities and Exchange Commission, Technology | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

The Speed Traders Workshop 2012, How High Frequency Traders Leverage Profitable Strategies to Find Alpha in Equities, Options, Futures and FXBob Greifeld, Nasdaq OMX’s Chief Executive Officer, has said on Sunday that the 20-minute delay in trading of Facebook’s $16bn offering last Friday had been caused by a millisecond systems blip due to the largest IPO auction “in the history of mankind”. The exchange had found itself in the spotlight after Facebook failed to deliver a first-day “pop” to investors, instead almost falling below its issuing price of $38. The shares, having risen briefly, quickly fell away to close the day with a gain of just 0.6%, at $38.23.

The fact that the glitch is just coming just weeks after BATS Global Markets, a firm that catered mainly to speed traders, was forced to withdraw its IPO after technical problems, nicely plays into the hands of critics who blame high-frequency trading for all types of financial and economic malaise.

For instance, Giuseppe Vegas, Chairman of Consob, Commissione Nazionale per le Società e la Borsa, Italy, suggested last week that high-frequency trading may pose systemic threats to markets and warrant bans. “Legislators and authorities need to ask themselves if certain types of innovation are good or bad for savers,” Vegas said in a speech at the Italian securities market regulator’s annual meeting in Milan today. Legislators shouldn’t hold back from “simply banning the spreading of dangerous practices and products,” he said.

“Financial innovation can be positive but legislators and authorities must avoid that it becomes a mechanism that wipes out families’ savings,” he said. That begs the question of the real possibility of high-frequency trading having any impact on families’ savings.

Nasdaq has now laid out the details of the glitch. In spite of testing 1bn in trading volumes under 100 scenarios, the exchange was caught by surprise when cancellations of trades kept interrupting the computer system’s attempt to complete the auction and produce an initial price for Facebook’s opening. Nasdaq says it designed its “IPO cross”, the process of calculating the opening price, in such a way that would allow continuous trading through an auction at the behest of its customers and has used the system in previous IPOs.

But in processing the huge volume of Facebook trades, it added two milliseconds to the time it took to produce an opening price. In those extra two milliseconds, orders to cancel the trades kept interrupting the auction process. That doesn’t seem to touch high-frequency trading at all, as shares were not even changing hands yet. As a result of the glitch the exchange decided to print the opening trade manually but was then forced to delay the process of confirming individual trades.

Systems blips and glitches will always happen as humans cannot possibly test all scenarios technical implementations will face. People can take advantage of financial innovation in a number of ways and it’s the role of regulators to make sure these ways are within the existing legal framework. Financial innovation travels fast and now becomes not a challenge for single regulatory bodies but for all of them to coordinate the best way to approach regulation and keep markets transparent and fair for all participants worldwide.

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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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Warsaw, Kiev, Beijing, Shanghai, Jakarta, Seoul, London, Hong Kong, Moscow… Not Lady Gaga’s ‘Born This Way Ball’ Tour

Posted on April 20, 2012. Filed under: Event Announcements, Exchanges, Regulations, Strategies, Technology | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

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

The Speed Traders Workshop 2012

The Speed Traders unveiled dates today for Edgar Perez’s full-day seminars, The Speed Traders Workshop 2012: How Algorithmic and High Frequency Traders Leverage Profitable Strategies to Find Alpha in Equities, Options, Futures and FX in Europe, presentations that will be followed by the rest of the world including dates in Southeast Asia, Latin America and North America, as published at http://www.TheSpeedTradersWorkshop.com.

The Speed Traders Workshop 2012 Hong Kong, Sao Paulo, Seoul and Kuala Lumpur put 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), published by McGraw-Hill Inc. (2011) and currently being translated into Chinese and Portuguese, on the map as the preeminent global expert in algorithmic and high-frequency trading.

The global high-frequency tour’s first leg will hit Europe and Asia through early June, encompassing 5 presentations at major financial centers that include Warsaw, Kiev, Beijing, Shanghai, Jakarta and Seoul. Perez will also present in New York and London. Beyond that, current plans call for him to visit Hong Kong in August, followed by Moscow, Dubai, Kuala Lumpur and Singapore towards the beginning of the fall, and then Chicago in October.

Perez is widely regarded as the preeminent speaker in the specialized area of high-frequency trading. 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 Herald, FIXGlobal Trading, The Korea Times, TODAY Online, Oriental Daily News and Business Times.

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, 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 and London (http://www.HFTLeadersForum.com), 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).

Perez was a vice president at Citigroup, a senior consultant at IBM, and a consultant at McKinsey & Co. in New York City. 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. Perez resides in the New York City area and is an accomplished salsa and hustle dancer.

The Speed Traders Workshop 2012 kicks off 2012 with a series of presentations in the world’s most important financial centers: Warsaw, Poland, May 11; Kiev, Ukraine, May 18; New York, May 22; Beijing, China, May 30; Shanghai, China, June 6; Jakarta, Indonesia, June 13; Seoul, South Korea, June 21; London, June 26; Mexico City, Mexico, July 27; Hong Kong, August 4; Moscow, Russia, August 10; Dubai, UAE, September 9; Kuala Lumpur, Malaysia, September 12; Singapore, September 15, and Chicago, October 2.

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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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Mega Million Miles for High Frequency Globe Trotter Edgar Perez, The Speed Traders Workshop 2012

Posted on March 24, 2012. Filed under: Book Review, Event Announcements, Exchanges, Securities and Exchange Commission, Strategies, Technology | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

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

Edgar Perez, Course Director, The Speed Traders Workshop 2012

Seoul (South Korea), Kuala Lumpur (Malaysia), Warsaw (Poland), Kiev (Ukraine) and Beijing and Shanghai (China) are just a few of the world’s financial centers where 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, will bring his well-attended full-day seminar, The Speed Traders Workshop 2012: How High Frequency Traders Leverage Profitable Strategies to Find Alpha in Equities, Options, Futures and FX.

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 (SEC), 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.

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.

The Speed Traders Workshop 2012 kicks off 2012 with a series of presentations in the world’s most important financial centers: Seoul, South Korea, March 28; Kuala Lumpur, Malaysia, April 12; 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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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, Addressed U.S. Securities and Exchange Commission in Washington DC

Posted on March 18, 2012. Filed under: Event Announcements, Regulations, 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 @ Securities and Exchange Commission

Mr. Edgar Perez, author of The Speed Traders and presenter of The Speed Traders Workshop 2012, “How High Frequency Traders Leverage Profitable Strategies to Find Alpha in Equities, Options, Futures and FX”, addressed senior officials of the U.S. Securities and Exchange Commission (SEC), federal agency that holds primary responsibility for enforcing the federal securities laws and regulating the securities industry, the nation’s stock and options exchanges, and other electronic securities markets in the United States. Mr. Perez’s presentation was held on Friday March 16, at the SEC headquarters in Washington DC.

The invitation received by Mr. Perez reads: “We are focused on many of the high-frequency trading issues that you discuss in your book The Speed Traders, copies of which we purchased for each of our unit supervisors. As such, we would appreciate hearing about your first-hand impressions of the high frequency and algorithmic worlds, as well as how you think current trading practices will evolve in the future.”

Mr. Perez is widely regarded as the preeminent speaker in the specialized areas 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), The Street (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 Venture Capital & Private Equity ConferenceHigh-Frequency Trading Leaders Forum 2011CFA SingaporeHong Kong Securities InstituteCourant 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, 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 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 12, 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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‘High Frequency Trading: Time to Slow Down?’, with Edgar Perez, The Speed Traders, at High Frequency Trading Happy Hour

Posted on March 8, 2012. Filed under: Event Announcements, Exchanges, Practitioners, Regulations, 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

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 speak at upcoming Golden Networking’s High Frequency Trading Happy Hour New York (http://hfthappyhournewyork.eventbrite.com), on  ‘High Frequency Trading: Time to Slow Down?’, March 13, at 6PM.

Mr. Perez’s presentation will provide a revealing overview of what high frequency traders should expect in the next months on the regulatory front. Mr. Perez is widely regarded as the preeminent speaker in the specialized areas of high-frequency trading. Mr. Perez has been featured on CNBC Cash Flow (with Oriel Morrison), CNBC Squawk Box (with Geoff Cutmore), BNN Business Day (with Kim Parlee), The Street (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.

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 Moderating Investing in Asia Panel at VC & PE Conference at Harvard Business School

Posted on February 26, 2012. Filed under: Event Announcements, Practitioners, Private Equity, Venture Capital | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

Melissa Ma, Christoph Mueller, Guang Yang, Ming Zhang and Edgar Perez

The popular Investing in Asia panel at the 18th Annual Venture Capital and Private Equity Conference at Harvard Business School, held in Boston, February 17-18, 2012, was moderated by 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).

Attendees at Investing in Asia Panel at Venture Capital & Private Equity Conference

The Investing in Asia panel drew more than 200 participants for what became an insightful and enlightening discussion led by Mr. Perez.

Guang Yang (Finergy Capital), Ming Zhang (Institute of World Economics and Politics) and Edgar Perez (The Speed Traders)

The panel reviewed investing opportunities in the biggest continent of the world, focusing on private equity activity in the major financial centers, including China, Hong Kong, Japan and Indonesia.

Full Room at Investing in Asia Panel at Harvard Business School

Distinguished members of the panel included Melissa Ma (Asia Alternatives Capital), Christoph Mueller (Shaw Kwei & Partners), Guang Yang (Finergy Capital) and Ming Zhang (Institute of World Economics and Politics).

Attendees at Investing in Asia Panel at Harvard Business School

The 18th Annual Venture Capital and Private Equity Conference was the largest and most anticipated student-run conference at Harvard Business School. Over 900 students, alumni, faculty and industry professionals joined Mr. Perez and dozens of speakers for a day to gather knowledge and share experiences.

Melissa Ma (Asia Alternatives Capital) and Christoph Mueller (Shaw Kwei & Partners)

Distinguished keynote speakers included Daniel A. D’Aniello, Founder, The Carlyle Group; Guy Hands, Founder & Chairman, Terra Firma; C. Richard Kramlich, Chairman & Co-Founder, New Enterprise Associates; and Alexander Navab, Co-Head of North American Private Equity, Kohlberg Kravis Roberts & Co.

Investing in Asia Panel at VC & PE Conference at Harvard Business School

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Asia Investing Panel Moderated by Edgar Perez Drawing Biggest Audience at Venture Capital & Private Equity Conference at Harvard Business School

Posted on February 21, 2012. Filed under: Book Review, Economy, Event Announcements, Financial Crisis | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

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

Edgar Perez, Author, 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), moderated the popular Investing in Asia panel at the 18th Annual Venture Capital and Private Equity Conference at Harvard Business School, held in Boston, February 17-18, 2012.

According to the organizers, the Investing in Asia panel drew more than 200 participants for what became an insightful and enlightening discussion led by Mr. Perez. The panel reviewed investing opportunities in the biggest continent of the world, focusing on private equity activity in the major financial centers, including China, Hong Kong, Japan and Indonesia. Distinguished members of the panel included Melissa Ma (Asia Alternatives Capital), Christoph Mueller (Shaw Kwei & Partners), Guang Yang (Finergy Capital) and Ming Zhang (Institute of World Economics and Politics).

The 18th Annual Venture Capital and Private Equity Conference is the largest and most anticipated student-run conference at Harvard Business School. Over 900 students, alumni, faculty and industry professionals joined Mr. Perez and dozens of speakers for a day to gather knowledge and share experiences. Keynote speakers included Daniel A. D’Aniello, Founder, The Carlyle Group; Guy Hands, Founder & Chairman, Terra Firma; C. Richard Kramlich, Chairman & Co-Founder, New Enterprise Associates; and Alexander Navab, Co-Head of North American Private Equity, Kohlberg Kravis Roberts & Co.

Mr. Perez is widely regarded as the preeminent speaker in the specialized areas of high-frequency trading and Asia investing. He is author of The Speed Traders, An Insider’s Look at the New High-Frequency Trading Phenomenon That is Transforming the Investing World, and is currently writing a book on investment opportunities in Indonesia, the world’s 4th most populous country.

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Alta frequência deve Girar 20% da Bolsa até o Fim do Ano na BM&FBovespa, Declarou Edgar Perez, Autor de The Speed Traders

Posted on February 7, 2012. Filed under: Event Announcements, Exchanges, Practitioners, Strategies, Technology | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

The Speed Traders Workshop 2012 Sao Paulo, From Brazil to South Korea to Malaysia to Qatar to Poland and Beyond

Edgar Perez, The Speed Traders Workshop 2012

Edgar Perez, Professor Adjunto da Polytechnic Institute, New York University e autor de The Speed Traders, foi citado em Valor Econômico. Perez está em visita ao Brasil nesta semana para apresentar The Speed Traders Workshop 2012 São Paulo: Como Estratégias de Alta Frequência Utilizadas pelos Operadores para Aumentar os Lucros pode Encontrar Alpha em Equites, Opções e Mercados Futuros (http://thespeedtradersworkshopsaopaulo.eventbrite.com), 8 de Fevereiro.

Valor Econômico é o maior jornal de economia, finanças e negócios do Brasil; é fruto da parceira entre dois dos maiores grupos de comunicação do país, as Organizações Globo e a Folha de S.Paulo, e teve sua primeira edição lançada em 2 de maio de 2000. O Valor é reconhecido pela relevância de seu conteúdo, bem como pela profundidade com que aborda assuntos referentes ao mundo dos negócios, economia e finanças. Graças à força de sua marca, o jornal ganhou diversos prêmios e é considerado um dos três veículos mais admirados do país, na categoria Jornal.

“A clássica proposição industrial na qual a máquina substituirá o homem tem pouco a ver com a realidade da invasão dos robôs na BM&FBovespa. A nova fase de expansão dos computadores equipados por algoritmos matemáticos capazes de realizar operações ultrarrápidas no mercado nasce a partir da gestação de fatores bem humanos. Sob acirrada corrida dos investimentos em infraestrutura tecnológica, uma mão de obra cada vez mais qualificada nas corretoras e a disputa por clientes garantem a expectativa de que os negócios via alta frequência (HFT, High Frequency Trading na sigla em inglês) dobrem de tamanho rapidamente. ‘A nova plataforma será capaz de processar 200 milhões de mensagens por dia e oferecerá uma média de latência de 1,1 milissegundo’, declarou Edgar Perez, professor do Instituto Politécnico da Universidade de Nova York, em conversa com o Valor antes de viajar a São Paulo onde será palestrante de seminário sobre o tema nesta semana.”

“A colaboração mais direta da BM&FBovespa em propagar a alta frequência foi dada por meio dos descontos em emolumentos (custo cobrado pela bolsa para negociação) baseados em volume negociado. ‘Embora o HFT ainda tenha muito a avançar no Brasil para alcançar volumes de mercados desenvolvidos, o crescimento tem sido impressionante, graças à combinação de expansão dos acessos de alta frequência e políticas de descontos de custos, resultando em um aumento do volume negociado’, afirmou Edgar Perez. ‘Custos podem quebrar os modelos de negócios em alta frequência, já que as margens da maioria das estratégias são muito pequenas’, acrescentou.”

Operadores de alta frequência foram chamados de diversas maneiras:desde mestres do universo e pioneiros de mercado, para exploradores, hackers de computador e predadores. Todos  que trabalham no mercado de investimento, possuem uma opinião sobre os operadores de alta frequência, porém quantos realmente entendem como eles trabalham? Os operadores fantasma do mundo do investimento mantiveram suas técnicas escondidas de todos, até agora. The Speed Traders Workshop 2012 (http://thespeedtradersworkshop.com), ministrado por Edgar Perez, autor de The Speed Traders, Um olhar interno sobre o novo fenômeno que está transformando o mundo dos investidores, revela com que frequência os players estão obtendo sucesso no mercado global e desenvolvendo novos algorítmicos de alta velocidade, desde os EUA e Europa até Singapura, India e Brasil.

Quem deve participar de The Speed Traders Workshop 2012 São Paulo: Como Estratégias de Alta Frequência Utilizadas pelos Operadores para Aumentar os Lucros pode Encontrar Alpha em Equites, Opções e Mercados Futuros?Analístas de commodities, investidores quantitativos, analistas de creditos de derivativos, mercado de capitais, analístas de fundos de cobertura, opções, bancos de investimento, operadores de algorítimos, derivativos, operadores de alta frequência, engenheiros financeiros, operadores de capital, escritórios familiares, operadores de commodities, fundações, operadores de derivativos, futuros investidores, operadores de derivativos internacionais, gestores de carteiras, operadores virtuais, gestores de risco, produtos estruturados, instituições investidoras, tecnólogos da informação, investidores de capital e vendedores de derivativos.

The Speed Traders Workshop 2012 (http://www.TheSpeedTradersWorkshop.com) abre as portas do mundo secreto dos operadores de alta frequência: a maneira mais controversa de se investir na atualidade; Os operadores buscando proteger os algorítimos que eles passaram tanto tempo aperfeiçoando, quase nunca falam com a imprensa ou revelam detalhes sobre como eles funcionam. The Speed Traders Workshop 2012 São Paulo começa uma série de apresentações pelo mundo, nos mais importante centros financeiros: Seoul, South Korea, março 28; Kuala Lumpur, Malaysia, 11 de abril; Doha, Qatar, 18 de abril; Warsaw, Poland, 11 de maio; Kiev, Ukraine, 18 de maio; Singapore, 26 de maio; Shanghai, China, 6 de junho; Jakarta, Indonesia, 13 de junho; Mexico City, Mexico, 27 julho; Hong Kong, 4 de agosto, e Moscow, Russia, 4 de agosto.

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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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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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