FIA EPTA Blog
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The beauty of co-location
At FIA EPTA, we think objections to co-location most often stem from not understanding what it is and how it benefits the market, or from the mistaken belief that co-location is some kind of ‘special club’ that only certain people get invited to join.
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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.
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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.
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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.
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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.
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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).
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Systems of the future
Have you seen the video of the BMW driving down Germany’s Autobahn with no one at the controls? You might not think that a “hands free” driving experience is one you’d ever like to have yourself but it’s quite extraordinary to watch. As long as the route is programmed into the car, it can manoeuvre itself through the traffic.
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The myths around latency arbitrage
One of the criticisms of High Frequency Trading is that they gain an unfair advantage by receiving data faster than others. This enables them to react to market events before anybody else and effectively ‘front-run’ the rest of the market.
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A light bulb goes off at Bercy
Every now and then we all have an "aha!" moment: with a flash of inspiration, we see a new way to solve a problem or unravel a mystery.
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