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Brexit puts fintech and high-frequency trading firms in FX winners' circle - What happened?
Brexit puts fintech and high-frequency trading firms in FX winners' circle
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FX banks in London traditionally did very well during periods of increased volatility. Today however, with regulations crimping the amount of risk they can run and increased capital costs applied to holding those risks, banks are less likely to garner outsized gains. In an environment of increased volatility, banks tended to eventually widen their spreads and capture more profits. Today, with non-banks providing an ever-increasing amount of liquidity to the market, banks will find it tougher to pass their costs onto their clients.
the source
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MetaTrader 5 – the best solution for HFT traders!
MetaTrader 5 – the best solution for HFT traders!
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- "Speed is a key attribute of High-Frequency Trading. Everything from data delivery and trade execution to the instant analysis based on huge amounts of data using hundreds of analytical tools must be as fast as possible. All this is available in MetaTrader 5!"
- "In MetaTrader 5, quotes are updated dozens of times per second. The quoting speed is an even more important factor for high-frequency trading robots. HFT robots need to receive a quote, analyze it, and perform a trade as fast as possible in order to catch the best of the market situation. Such a high speed is not available in other platforms, including MetaTrader 4, therefore MetaTrader 5 HFT traders are ahead of other platform users in terms of quote receiving speed."
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Wall Street’s Speed Demons Are Heroes
Cognitive Shift, Trading Costs, Cozy Relationships and Full Disclosure
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Across the wider world, Wall Street’s speed demons are all too often cast as the villains of the stock market.
As computerized trading firms have become the dominant buyers and sellers of equities, they’ve been blamed for exploiting investors and causing bouts of extreme volatility, and were famously portrayed by Michael Lewis as part of a rigged system in “Flash Boys.” The Bundesbank said they can help trigger flash crashes and Hillary Clinton made policing them an election issue.
But in academic circles at least, high-frequency traders are more often treated like heroes.
Since 2013, positive research has outnumbered negative by a 2-1 margin, a database search of the 30 most-cited papers on HFTs showed. Researchers found automated firms reduced trading costs, and contrary to popular opinion, improved market depth and stability. It’s a turnaround from the previous three years, when most studies were inconclusive or negative. The results were compiled with Microsoft’s search engine for academic research.
“As a whole, the literature strongly supports HFTs being a net positive,” said Jonathan Brogaard, a professor at the University of Washington and co-author of “High-Frequency Trading and Price Discovery,” which has been mentioned by other researchers more than 350 times as the most-cited paper.
Soon-to-be published research by VU University Amsterdam’s Albert Menkveld also indicates trading costs have plunged more than 50 percent as electronic markets and HFTs emerged in the past decade.
“Years ago, somebody said ‘high-frequency trading’ and you immediately associated it with detrimental aspects and implications,” said Ryan Larson, the head of U.S. equity trading at RBC Global Asset Management, which oversees $370 billion. “It’s such a naive viewpoint now.”
the source
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High-frequency trading in the foreign exchange market
High-frequency trading in the foreign exchange market
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In March 2011, the Markets Committee established a Study Group to conduct a fact-finding study on high-frequency trading (HFT) in the foreign exchange (FX) market, with a view to identifying areas that may warrant further investigation by the central banking community. This initiative followed from a number of previous discussions by the Committee about factors contributing to changes in the structure of the global FX market.
The Study Group was chaired by Guy Debelle, Assistant Governor of the Reserve Bank of Australia. The Group drafted an interim report for review by the Committee in May 2011. The finalised report was presented to central bank Governors at the Global Economy Meeting in early September 2011, where it received endorsement for publication.
The subject matter of this report is clearly part of the core expertise of the Markets Committee, which has a long-standing interest in the structure and functioning of the FX market. I hope this report will serve as a timely input to the ongoing discussion about the impact of technological changes, including the rise of algorithmic trading in general and HFT in particular, on the functioning and integrity of financial markets. The FX market focus of this report should also be a valuable complement to a discussion that has so far been based mostly on developments in equity markets.
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Artificial Intelligence Experts Join Sinovation Ventures
China's Sinovation Ventures announced that they have several talents joining the company to further enhance distribution and investment in the artificial intelligence sector.
According to the company, Google's senior engineer Wang Yonggang and Microsoft Research's researcher Wang Jiaping formally joined the artificial intelligence institute of Sinovation Ventures.
At the same time, former marketing director of Google China Huang Huiwen announced plans to join Sinovation Ventures as a partner and chief marketing officer of the company. Former investment vice president of Legend Capital Xiong Hao will join Sinovation Ventures as general manager and investment director of South China region of the company.
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