The commissions that brokers take from trade executions dropped sharply in the first quarter after the enactment of new European rules on research unbundling, increasing downward pressure on an area that has already felt the effects of moves away from high-touch strategies.
“The reemergence of the algo boys and the HFT (high frequency trading) funds has sparked the largest rally with commodities in eight months. After declining for a record five years in a row, it seems the odds are high that hard assets in general will post a year-over-year gain. For agricultural producers that is great news because selling into a rising market is far more profitable than selling into a declining market.”
Former Goldman Sachs Group Inc. programmer Sergey Aleynikov on Monday filed a new challenge to his criminal conviction of stealing computer code from the investment bank when he left for another job. Aleynikov, whose case partly inspired Michael Lewis’ bestselling book “Flash Boys” on high-frequency trading in the U.S. equity market, previously had his conviction overturned by the judge who oversaw his 2015 trial in Manhattan Supreme Court.
Finally, is quant the magic panacea and answer to the kind of cross-asset correlation that we saw during the global financial crisis? I doubt it. A black swan event, by definition, comes from where you don’t expect. If quant has helped iron out cross-asset correlation, then different forces will probably come into play to bring on the next crisis — or it wouldn’t be a crisis. And as more and more quant funds start playing on particular risk factors, their behaviour is bound to influence the market, which always reacts on itself. Quants may start to influence the very terms of the equations they seek to rely on. That is one way that crises tend to develop.
New Report: Algorithmic Trading Market — drivers, challenges, key trends, standardization, deployment models, Sales Market Comparison and strategies
The report represents a thorough review of the entire growth trajectory of the worldwide Algorithmic Trading market over the span of the forecast period. Different sections have been taken into consideration to give the readers an all-round perspective of the entire market scenario.