Tag: equities

Managers seek low latency trading venues (Financial News)

Its not new news that exchanges are increasingly touting the low latency of their infrastructure as a reason to trade with them.  This article has a few good stats as to what low latency actually is: Kevin McPartland, senior analyst at financial markets research firm Tabb Group, said: “Top US equity exchanges are matching orders […]

Wall Street’s Tech War (The Record)

From the Sunday edition of The Record, a interesting article focusing on the move of “Wall Street” to New Jersey.  The vast majority of US equity order matching actually goes on somewhere in NJ, regardless of where the exchange itself is officially incorporated.  If it wasn’t for the relatively small bit of trading that happens […]

Computer traders blamed for Wall Street crash (New Scientist)

Who would have guessed a magazine for scientists would be reporting about a market crash, but with so much equity and listed derivatives trading driven by algorithms and trading strategies designed by scientists the connection is not as far as it may seem. Algorithmic trading is well established, but the speed at which trades are […]

'Stub Quoting' Helps Explain Last Thursday's Penny Prices (Wall Street Journal)

Everyone is still trying to understand what happened on May 6.  Stub quoting was certainly not the overall cause, but might help to explain why a few stocks went to a penny. “If we end up with the trading curbs across all the trading exchanges that have been discussed, it would make this become a […]

Tax Avoidance or Smart Investing?

What else can derivatives be blamed for?  OTC equity derivatives are now in the spotlight of the IRS for promoting tax avoidance.  The theory is that an equity swap allows the purchaser to collect dividends on the “swapped” stock without paying the taxes associated with actually owning that stock.  I can certainly see the merit […]

SIN – Budgeting for Latency: If I Shave a Microsecond, Will I See a 10X Profit?

The trick is to make sure the money being spent to remove delays will be more than reimbursed by the profits achieved in the trading strategy that is improved by it, says Kevin McPartland, senior analyst at Tabb Group. “If I’m spending $1M to get one microsecond faster, will I make ten times what I […]

WS&T – Sell-Side Equity Technology Gets Smarter in 2010

So, the sell side will continue to invest in infrastructure to grow capacity as the market demand for trading U.S. equities grows, but McPartland predicts it will look for smarter ways to do this and that growth will be smaller in 2010 than in the past. Full Article Here [youtube=http://www.youtube.com/watch?v=lyVyJD2vXdM]

Business demands to outpace trading tech budgets in 2010

McPartland argues that because a completely virtualised and highly utilised infrastructure is still years away for sell-side equities technology, a large gap exists between what is currently possible and actually done. In that same vein, cloud computing will be a part of equity IT strategies in the future but security concerns leave it more interesting […]

US Equity Technology 2010: The Sell Side Perspective

Download Full Report Here The study focuses on US equity infrastructures and is based on conversations with CIOs, CTOs, and heads of technology at 24 sell side firms.  Bulge bracket firms accounted for one quarter of total participants, however this equates to two thirds of all bulge bracket firms.  The discussions covered usage and trends […]

Trader's – High-Frequency Trading Is a Tough Game

The cost of the technology and infrastucture needed to support high-frequency trading is “tens of millions of dollars” per year, according to Kevin McPartland, a senior analyst at financial services research firm TABB Group. He moderated a panel sponsored by TABB Group and Switch and Data, a data center operator, last Thursday. This article is […]