The New York Times: Don’t Ban the Trades; Regulate Them in Real Time
In my latest piece in The New York Times, I argue that wrongdoing existed long before the advent of high-frequency trading, and it will always be a part of markets. High-frequency trading is simply a tool; it can be positive or negative for investors and markets. To maximize the benefit and minimize the downsides, regulators need to catch up with the technology.
High-frequency trading has been under a microscope since the infamous “flash crash” in 2010. Let’s remember, though: The market rebounded that day almost as fast as it fell, and regulators ultimately determined that the crash was initiated by human error. But many in the financial sector and in government were uncomfortable at the thought that high-frequency trading programs could vaporize huge amounts of equity in a matter of minutes.
Read Full Post | Make a Comment ( None so far )Caixin Media Covers The Speed Traders Workshop 2012 in China
The Speed Traders Workshop 2012
2012年6月第二个交易日，上证指数因为特殊的波动引发市场关注。来自监管当局的消息称，交易所已经注意到了市场中的高频交易，但未发现有市场操纵行为。
将通过计算机控制的高频交易（High-frequency Trading，简称HFT）行为与人为的操纵市场联系到一起引人无限遐思。高频交易到底是加剧市场波动还是缩短市场波动？如何监管高频交易？是否应该像 对“粮仓中的老鼠”一样，限制高频交易？这都是摆在全球监管者面前的一道难题。尤其对于散户众多的中国证券市场，高频交易又会成为何种角色？
“美国各界仍在争论，焦点是该不该对高频交易有限制，高频交易到底是利大于弊还是弊大于利。”纽约华尔街一家全球宏观型对冲基金数量交易组的数量投资经理杨旭对财新记者表示。
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Read Full Post | Make a Comment ( None so far )The Speed Traders Workshop 2012: News Coverage From China Business Network (CBN)
Mr. Edgar Perez, Director of The Speed Traders Workshop
Edgar Perez援引数据介绍指出，目前在美国证券市场中的整体成交金额中有56%来自高频交易，而这种交易手法也是伴随着科技的发展、市场的竞争、以及监管政策的变化，在证券市场中自然演进所出现的。高
频交易研究专家Edgar Perez近日在与第一财经采访时表示，高频交易是一种专注于“速度（speed）”的投资方法，主要以先进的电脑技术和设备寻求在极短时间内的获利，然 而这种投资方法与巴菲特的“价值投资”哲学并不矛盾，亦有助投资者能跳出经济周期和宏观大环境的制约，寻找到不为外界环境所左右的“阿尔法”值（即超出市 场基准的收益回报）。
Edgar Perez援引数据介绍指出，目前在美国证券市场中的整体成交金额中有56%来自高频交易，而这种交易手法也是伴随着科技的发展、市场的竞争、以及监管政策的变化，在证券市场中自然演进所出现的。
高频交易主要以电脑完成交易，数据处理可以在毫秒（0.001秒）之间，人力根本无法与之匹配，因此该种交易主要依赖先进的科学技术和电脑算法。高频交易的主要策略包括电子化交易、趋势追踪、相对价值套利、流动性监测、新闻解读分析和投资基金方法等。
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Read Full Post | Make a Comment ( 1 so far )The Speed Traders Workshop 2012 Shanghai at Hult International Business School
Mr. Edgar Perez, Author of The Speed Traders
Edgar Perez, Author, The Speed Traders, Speaker at The Speed Traders Workshop 2012 Shanghai: How Algorithmic and High Frequency Traders Leverage Profitable Strategies to Find Alpha in Equities, Options, Futures and FX, June 6
New York, NY, May 26, 2012 — Edgar Perez will be the presenter at upcoming The Speed Traders Workshop 2012 Shanghai: How Algorithmic and High Frequency Traders Leverage Profitable Strategies to Find Alpha in Equities, Options, Futures and FX, June 6, to be held at Hult International Business School’ Shanghai campus.
Hult International Business School (formerly known as the Arthur D. Little School of Management) is a top business school with campuses in Boston, San Francisco, London, Dubai and Shanghai. It offers a range of business-focused degree programs including MBA, Executive MBA, Master and Undergraduate degrees. Hult is affiliated with the privately held company EF Education First and is named for EF’s founder, Bertil Hult. The school is incorporated as Hult International Business School, Inc., which is a not-for-profit organization incorporated under Massachusetts law.
Hult has a list of faculty which is on par with other business schools, and includes many faculty members from colleges in the northeast of the USA. Some of the Hult faculty also teaches at Babson College, Harvard, INSEAD and other business schools.
Hult organizes the Hult Global Case Challenge, an annual international case competition that takes on global social challenges by generating ideas and solutions from students from around the world. The organization is a member of the Clinton Global Initiative. At the event, student teams of five from business schools from around the world are invited to participate at one of five international locations where teams compete to develop the best solutions around the proposed challenge area. Cities of competition include Boston, San Francisco, London, Dubai and Shanghai, where The Speed Traders Workshop 2012 will be held.
Mr. Perez, author of The Speed Traders, An Insider’s Look at the New High-Frequency Trading Phenomenon That is Transforming the Investing World, published by McGraw-Hill Inc. (2011) and currently being translated into Chinese, has been engaged to present to the U.S. Securities and Exchange Commission, CFA Singapore, Hong Kong Securities Institute, Courant Institute of Mathematical Sciences at New York University and Pace University, among other institutions. In addition, Mr. Perez has spoken at Harvard Business School’s Venture Capital & Private Equity Conference (Boston), High-Frequency Trading Leaders Forum (New York, Chicago, Hong Kong, Sao Paulo, London, Singapore), MIT Sloan Investment Management Conference (Cambridge), High-Frequency Trading Happy Hour (New York), Institutional Investor’s Global Growth Markets Forum (London), Technical Analysis Society (Singapore), TradeTech Asia (Singapore), FIXGlobal Face2Face (Seoul), 2nd Private Equity Convention Russia, CIS & Eurasia (London), among other global forums.
Mr. Perez is one of the great business networkers and motivators on the lecture circuit; he is available worldwide for the following speaking engagements: Present and Future of High-Frequency Trading, The Real Story behind the “Flash Crash”, Networking for Financial Executives, and Business Networking for Success.
Read Full Post | Make a Comment ( None so far )Miss It at Your Own Risk: World’s Only High Frequency Trading Seminar, Now in China
The Speed Traders Workshop 2012
Edgar Perez, Author, The Speed Traders, Speaker at The Speed Traders Workshop 2012: How Algorithmic and High Frequency Traders Leverage Profitable Strategies to Find Alpha in Equities, Options, Futures and FX, Shanghai (June 6)
Mr. Edgar Perez, author, The Speed Traders, and former McKinsey & Co. consultant, is leading the world’s only high frequency trading seminar, aptly called The Speed Traders Workshop 2012: How Algorithmic and High Frequency Traders Leverage Profitable Strategies to Find Alpha in Equities, Options, Futures and FX, for the first time in China. The Speed Traders Workshop will next take place in Shanghai on June 6.
Mr. Edgar Perez is widely regarded as the preeminent speaker in the specialized area of high-frequency trading. He is author of The Speed Traders, An Insider’s Look at the New High-Frequency Trading Phenomenon That is Transforming the Investing World, published by McGraw-Hill Inc. (2011) in English and China Financial Publishing House (2012) in Chinese. In addition, Mr. Edgar Perez is course director of The Speed Traders Workshop 2012, How Algorithmic and High Frequency Traders Leverage Profitable Strategies to Find Alpha in Equities, Options, Futures and FX (Hong Kong, Sao Paulo, Seoul, Kuala Lumpur, Warsaw and Kiev).
Mr. Edgar Perez has been featured on CNBC Cash Flow (with Oriel Morrison), CNBC Squawk Box (with Geoff Cutmore), BNN Business Day (with Kim Parlee), TheStreet.com (with Gregg Greenberg), Channel NewsAsia Business Tonight and Cents & Sensibilities (with Lin Xue Ling), NHK World, iMoney Hong Kong, Hedge Fund Brief, The Wall Street Journal, The New York Times, Dallas Morning News, Valor Econômico, FIXGlobal Trading, TODAY Online, Oriental Daily News and Business Times.
In the last months, Mr. Edgar Perez has been engaged to present to the U.S. Securities and Exchange Commission, CFA Singapore, Hong Kong Securities Institute, Courant Institute of Mathematical Sciences at New York University and Pace University, among other institutions. In addition, Mr. Edgar Perez has spoken at Harvard Business School’s Venture Capital & Private Equity Conference (Boston), High-Frequency Trading Leaders Forum (New York, Chicago, Hong Kong, Sao Paulo, London, Singapore), MIT Sloan Investment Management Conference (Cambridge), High-Frequency Trading Happy Hour (New York), Institutional Investor’s Global Growth Markets Forum (London), Technical Analysis Society (Singapore), TradeTech Asia (Singapore), FIXGlobal Face2Face (Seoul), 2nd Private Equity Convention Russia, CIS & Eurasia (London), among other global forums.
The Speed Traders Workshop 2012 will reveal how high-frequency trading players are succeeding in the global markets and driving the development of algorithmic trading at breakneck speeds from the U.S. and Europe to India, Singapore and Brazil. The Speed Traders Workshop 2012 kicks off a series of presentations in the world’s most important financial centers: Jakarta, Indonesia, June 13; Mexico City, Mexico, July 27; Hong Kong, August 4, and Moscow, Russia, August 10.
Mr. Edgar Perez is one of the great business networkers and motivators on the business circuit; he is available worldwide for the following speaking engagements: Present and Future of High-Frequency Trading, The Real Story behind the “Flash Crash”, Networking for Financial Executives, and Business Networking for Success.
Read Full Post | Make a Comment ( None so far )The Speed Traders Selected Modern Finance Book of 2011
The Speed Traders, An Insider’s Look at the New High-Frequency Trading Phenomenon That is Transforming the Investing World (http://www.thespeedtraders.com), by Mr. Edgar Perez , has been selected as Modern Finance Book of 2011 by prestigious financial blog Modern Finance Report. As another year draws to a close, editors at Modern Finance Report shared with readers some of their favorite business books of the year.
From Modern Finance Report, “high-frequency trading (HFT) is the most controversial form of investing today, and speed traders have generally flown under the radar; in the name of protecting the algorithms they have spent so much time perfecting, they almost never talk to the press and disclose as little as possible about how they operate—until now.” Modern Finance Report cites then Bart Chilton, United States Commodity Futures Trading Commissioner: “Edgar’s book is fantastic . . . I recommend it highly.”
The Speed Traders, published by McGraw-Hill Inc., is the most comprehensive, revealing work available on the most important development in trading in generations. High-frequency trading will no doubt play an ever larger role as computer technology advances and the global exchanges embrace fast electronic access. The Speed Traders explains everything there is to know about how today’s high-frequency traders make millions—one cent at a time. In this new title, The Speed Traders, Mr. Perez opens the door to the secretive world of high-frequency trading. Inside, prominent figures drop their guard and speak with unprecedented candidness about their trade.
Read Full Post | Make a Comment ( None so far )For Renowned Speed Trader, Humans Not Allowed Anywhere Near High-Frequency Execution System
It took a while for Adam Afshar, one of the leading high-frequency traders featured in Edgar Perez’s The Speed Traders: An Insider’s Look at the New High-Frequency Trading Phenomenon That is Transforming the Investing World, to believe that the markets were more or less efficient under normal circumstances and to realize that the analysts at most firms provided no value and sometimes a negative value. He says, “My first attempt at using the computer was to build a system to help traders have better information faster to enable them or their portfolio managers to make better decisions, a sort of hybrid system where the computers are helping the humans. But, in less than a year, I realized that discretionary human participation in selection, portfolio management , or trading was so deleterious that no amount of computer power or intellectual algorithms could mitigate it.”
Adam Afshar, Renowned Speed Trader- Hyde Park Global Investments
He adds: “It’s very important to stress this point because if the system allows human discretion at any level (idea generation, portfolio management, or trading) and your machine does not have the human discretionary elements modeled correctly in its learning algorithm (which we claim is not possible at this time), what you are left with is simply a quantitative trader that uses certain calculations to assist his or her trading. It becomes difficult or even impossible to assess whether the success or failure was due to the calculations, formula, or algorithms . Although we can argue on the pros and cons of humans as traders, we have to agree that this method is not and cannot be scientific. It is not scientific because it is not possible to backtest a model that allows any discretionary human intervention. For example, if you have computers that are generating trades, but the execution is done by humans, then we would argue that you cannot determine whether the success or failure of the system was due to its robust artificial intelligence or to a very good trader, and there is no way of testing and duplicating the results. Therefore, we would argue that any backtesting becomes essentially void.”
Hyde Park Global Investments, Afshar’s firm, is an investment and trading firm that has developed an artificial intelligence system built primarily on genetic algorithms and other evolutionary models to identify mispricings, arbitrage, and patterns for many electronic financial markets and the robotic platform to monetize the opportunities. The firm, which trades its own capital so far, potentially will accept investments from outside sources.
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