Search

EPTA News

Filter
  • Michael Lewis' HFT Book: More of a Dark Market Than a Lit One

    Craig Pirrong, the author of the Streetwise Professor blog, comments that “Flash Boys” is essentially a morality tale that does not capture the “true complexity” of markets or high-frequency trading.

    CONTINUE READING
  • No, Michael Lewis, the U.S. Equities Market Is Not Rigged

    Larry Tabb, the chief executive of the consulting firm Tabb Group, explains why recent statements by author Michael Lewis that the U.S. equities market is “rigged” are wrong and explains that intermediaries perform one of the most important functions of a market—price discovery.

    CONTINUE READING
  • Flash Boys Misses the Big Picture

    Richard Gorelick comments that Flash Boys, the new book on U.S. equity markets by author Michael Lewis, focuses on “business models that benefit from scaring the public” and ignores the substantial benefits for investors that have come from advances in trading technology.

    CONTINUE READING
  • High-Frequency Hyperbole

    Clifford Asness and Michael Mendelson of AQR Capital Management, an investment management firm with $98 billion in assets under management, comment that much of the criticism of HFT is misguided and add that their firm has benefitted from the reduction in trade execution costs associated with the use of HFT for market-making.

    CONTINUE READING
  • Misconceptions about algorithmic trading

    Today marks the end of my first month as Secretary General for FIA EPTA. In only a month, my eyes have opened to the many misconceptions I see reflected in the media about what our member firms actually do.

    CONTINUE READING
  • High-Speed Trading Isn't Just Faster, It's Also Fairer

    Peter Nabicht writes in an editorial that professional traders are not competing against investors.

    CONTINUE READING
  • What do the Olympics have in common with securities markets?

    I am a very keen follower of ice speed-skating, which is a popular sport in my home country The Netherlands. Over the last few weeks I’ve watched skaters participating in World Cup races to qualify for the Sochi Olympics this week, and it occurs to me that there are some interesting parallels between this very competitive sport and the skills I learned in my career in the securities markets.

    CONTINUE READING
  • Market liquidity - favouring electronic markets over pit trading

    Those who think that the tech race towards electronic trading has led to illiquid markets have forgotten what the world looked like only 15 years ago.

    CONTINUE READING
  • MiFID - congratulations on your sixth anniversary

    It occurred to me recently that there has not been any news coverage of the 6th anniversary of MiFID, which was implemented in Europe on November 1st 2007. The pregnancy of MiFID took many many years: some claim as many as 14. Today we are awaiting a new member of the family: MiFID 2. The exact date of birth is yet to be confirmed, but Father Ferber is warming up the towels as we speak.

    CONTINUE READING
  • Does a liquidity provider also 'remove' liquidity?

    The definitions of both liquidity and liquidity provider are always an issue of much debate and often confusion. I've always believed the best definition of liquidity is the ability to transfer an asset into cash (or the other way around).

    CONTINUE READING