“Liquidity is the new leverage”: That was the ominous warning fired by Goldman Sachs’ head of Global Credit Strategy, Charles Himmelberg, admonishing traders about the dangers of the ongoing algorithmic transformation in the markets, including the toxic combination of Quant Funds and High-Frequency Trading and how they put the bond and equities markets at high risk of a systemic event.
Bloomberg today announced the launch of a new price forecasting application for investment professionals powered by artificial intelligence (AI). The “Alpaca Forecast AI Prediction Matrix” is an application (app) that provides short-term market price forecasts for major markets such as USD/JPY, EUR/USD, AUD/JPY, CME Nikkei 225 Futures Index and US 10-year treasury bonds, using Bloomberg’s Market Data Feed (B-PIPE).
In this architecture, data was disseminated in a sequential manner whereby a stock broker who connected first to the server of stock exchange received tick, that is market feed before the stockbroker who connected later.
Section 502 of the Act requires the SEC to submit a study on algorithmic trading to committees of the Senate and the House of Representatives, reporting on the risks and benefits of algorithmic trading in the capital markets in the United States.
Algo-trading has the potential to deliver particularly bad news for the coffee industry, as volatile intra-day trading would likely catch producers, roasters and retailers off guard with sudden price changes. Ultimately, this may lead to increased price volatility for the consumer.
The “AlpacaForecast AI Prediction Matrix” is an application that utilizes Alpaca’s large-scale data processing technology and deep learning technology and shows real-time short-term forecasts for major markets. The company has decided to develop this application in hope that it would bring advanced AI market forecasting capabilities to the global financial community, right to their desks.