Tag Archives: high frequency trading

High Frequency Trader Convicted for Spoofing Markets

High frequency futures trader, Michael Coscia, has been found guilty on 12 accounts of fraud for “spoofing” market activity. He manipulated prices on the Chicago Mercantile Exchange by placing large, unfilled orders (spoofing) and placing smaller orders that were filled. He effectively created deficits in the market, allowing him to temporarily have some control over […]

Trader Arrested for Manipulation in 2010 Flash Crash

This week, the U.S. Department of Justice arrested trader Navinder Singh Sarao, who is believed to be partially responsible for the May 6, 2010 Flash Crash. U.S. prosecutors believe Singh weakened markets through manipulation to cause 2010’s 15 minutes of financial free fall chaos that brought the world’s biggest markets to their knees. His arrest […]

New High-Frequency Trading Regulations Underway

On Thursday, June 5, 2014 Mary Jo White, SEC Chair, announced plans to regulate high-frequency trading.  At a New York City conference, she said, “The SEC should not roll back the technology clock, but we are assessing the extent to which specific elements of the computer-driven trading environment may be working against investors rather than […]

New Evidence Shows HFT More Concerning than Ever

Vice just published an article regarding High Frequency Trading (HFT) algorithms. The illustration is by Jacob Livengood A few interesting points: • Half of US stock-exchange trades in 2012 (1.6 billion shares a day) were placed by HFT. • A University of Miami research paper published in September 2013 indicates that between January 2006 to […]

How High Frequency Trading Works, Trading Speed, and the Flash Crash

Speed in the world of trading is everything.  In the beginning, floor traders would be huddled together shouting orders inside the major exchanges.  On average, these orders would take about 11 seconds to execute a trade.  Nowadays, 50 to 70% are now executed by an algorithm at a speed rate and scale beyond our comprehension. […]

High Frequency Trading – Economic Effects

Mark Cuban, owner of the Dallas Mavericks, Landmark Theaters and Magnolia Pictures, recently wrote an editorial regarding the OWS (Occupy Wall Street) movement. As someone who is “part of the 1%,” it may come as a surprise that Mark is in favor of the movement. His reasons are stated in the Business Insider article. Whether […]