‘Feature’ Algorithmic Trading Articles & Financial Insight
Automated Trader magazine Features (previously known as Marketplace) examine a particular aspect of algorithmic or automated trading with input from those active in the industry. Topics can include regional surveys, trading technology, security types and the activities of various market participant
- Sentimental smarts
SUBSCRIBERS ONLYThe era of unstructured information flow has made quant shops keenly interested in news sentiment analysis. Automated Trader finds out what the latest developments are and what's getting practitioners excited about the future.
- SEF Tracker
SUBSCRIBERS ONLYThe FIA has been tracking monthly SEF volumes for over a year now. Automated Trader speaks to Will Acworth, senior vice president, about what story the figures are telling.
- Dealing with Swaps
SUBSCRIBERS ONLYSwap execution facilities have been somewhat of a slow burner. Even now as they pick up steam, a request-for-quote system remains the popular choice. But a regulatory preference for central limit order book trading means that exchange-like structures will gain prominence as the swaps market place evolves both in the US and Europe. It could also mean a ramp-up in buy side seeking viable hedging alternatives. Anna Reitman reports on how it's all playing out for market participants.
- For venues and vendors, the new architecture gets competitive juices flowing
SUBSCRIBERS ONLYWhile so much of the focus on the new postcrisis infrastructure has been about how market participants can adapt, the changes represent enormous challenges and opportunities for other types of firms as well. For both venues and vendors, the new architecture has led to fierce competition.
- Post-crisis plumbing: Fitting the new architecture
SUBSCRIBERS ONLYThe financial industry has embarked on an intense construction project, building the market infrastructure of the future as CSDs, CCPs and trade repositories take on core roles in the post-crisis era. What does the new plumbing mean for the development of automated systems? Adam Cox takes a look.
- DCAM best practice: Identifiers and instrument ID
SUBSCRIBERS ONLYThe capital markets sector is bedevilled by US v Europe v Asia regulatory differences. Lack of a common entity identification scheme (i.e. global LEIs), as well as common instrument ID scheme (i.e. for tagging collateralised debt obligations CDOs, Exchange-traded funds ETFs, etc) is a problem that the EDM Council is trying to address by encouraging adoption of its benchmarking 'how to' Data Management Capability Assessment Model (DCAM).
- The Data Deluge
SUBSCRIBERS ONLYA data deluge is hitting capital markets as new surveillance, trade reporting, regulation and market practices come to fruition. Neil Ainger asks if firms can handle the huge volumes of data, intra-day collateral, repository and other forms of data now required on global financial markets.
- Fixed income on E
SUBSCRIBERS ONLYWord on the street is that fixed income is lock-step behind FX and equities in terms of algorithmic trading. But there are some major hurdles along the way. Automated Trader takes a look.
- Automated Trader talks to Pavel Vidov, head of trading at Intrast
SUBSCRIBERS ONLYAutomated Trader talks to Pavel Vidov, head of trading for Russian proprietary trading firm Intrast, founded in 1992.
- Automated Trader talks to Bruno Trigo, head of electronic trading at XP Investimentos
SUBSCRIBERS ONLYAutomated Trader talks to head of electronic trading, Bruno Trigo, at XP Investimentos, a broker and market maker on the Brazilian exchange.
SUBSCRIBERS ONLYIt's been almost 15 years since the original BRIC grouping was minted, referring to Brazil, Russia, India and China, with South Africa getting tacked on in 2010. Much has changed in the world since then, and though the regions push forward with cooperative arrangements among themselves, there is a big question mark over the relevance of these emerging markets as a group. Automated Trader tries to stitch together the macro and micro realities.
- Fair Play
SUBSCRIBERS ONLYMajor trading venues have historically championed the idea of a level playing field, but critics say the pitch can be decidedly uneven these days. Adam Cox reports on an intensifying debate over whether markets are indeed fair, and what that debate could lead to.
SUBSCRIBERS ONLYHFT democratisation was a big buzz-phrase a few years ago, and today high frequency technology is spreading across asset classes and geographies, and from signal generating algos to execution. meanwhile, there's talk that quantitative trading is next in line to be "democratised" and people are wondering whether there are any lessons to learn from the HFT experience. Anna Reitman reports.
- The Rise of the Asian Superbroker
As the global banks grapple with tides of regulation, fines and a myriad of other post-crisis issues, local Asian institutions are tooling up and stepping in to fill the gaps. The "Asian superbroker" is emerging and catching up with the big guys.
- Kinks in the wire: Asean integration
SUBSCRIBERS ONLYAsean integration approaches next year, but a fully linked-up financial system will be several years in the making. Sophie Lewisohn hears about new initiatives between exchanges and what still needs to happen for trading to take off.
- State of Surveillance
SUBSCRIBERS ONLYWhat does watching the global markets mean for regulators and traders in the 21st century?
- Stockholm Syndrome
SUBSCRIBERS ONLYThe Swedish word lagom doesn't have a direct equivalent in English. Loosely translated to mean 'in moderation', it's basically all about finding the right balance. Lagom is something of a mantra for Swedes, who seek it in all aspects of life. So, as Adam Cox reports, it should come as little surprise that the concept of lagom appears to have been a guiding principle in the development of the Swedish marketplace.
- Muscle and Speed
SUBSCRIBERS ONLYYou would think the tech-savvy nation of Japan would be leading the way when it comes to algorithmic trading. In fact, it's decidedly lagging. But things are changing and one of the world's most developed markets is finally getting serious about automation. Mary-Ellen Barker reports.
- FTT, HFT...WTF? Political pressure for a European financial transaction tax poses threats
SUBSCRIBERS ONLYAs European regulators and politicians try to find agreement on a broad-based European financial transaction tax (FTT) for some EU members, Automated Trader Editor Adam Cox looks at the implications if such a levy finally emerges.
- Outside looking in
SUBSCRIBERS ONLYTo outsiders, the algorithmic trading industry is a citadel - big, rich, and closed to tourists. Assembling the tools needed to get behind the walls is tough, laborious and time-consuming. So what are the prospects for interlopers to prise open a gap and get inside?
- Sex, death and the quest for algorithmic glory
SUBSCRIBERS ONLYYou don't need to look far to find critics of artificial intelligence methods in financial markets. But that hasn't stopped technologists and academics from trying to push the boundaries of what a computer can do when trying to analyse complex situations and make decisions. Automated Trader Editor Adam Cox talks to some of the researchers and executives who see a future for AI in the markets.
- Gaining a foothold in FX
SUBSCRIBERS ONLYAdam Cox reports on the continuing appeal of the massive foreign exchange market for funds, brokers and vendors alike.
- Class acts: the tricky business of trading new asset markets
SUBSCRIBERS ONLYIs it any surprise that firms have ventured off in search of new pastures, trying out different asset classes, given the persistent lull in trading activity in the world's equity markets? Adam Cox reports on what they need to consider when branching out.
- To catch a thief: the dark and dangerous world of network security
SUBSCRIBERS ONLYHow do you deal with the rogue employee who decides what's yours is his? Or fend off hackers trying to gain access to your computers? James FitzGerald probes the murky world of network security.
- Picking up the Pace
QUALIFIED REGISTRANTS & SUBSCRIBERSThe idiosyncrasies of the fixed income market have made it a laggard in the adoption of automated and algorithmic trading, but the soul searching that followed the sub-prime crisis may accelerate uptake, reports Chris Hall.
- MiFID Descends across Europe
QUALIFIED REGISTRANTS & SUBSCRIBERSSix months after its launch, the Markets in Financial Instruments Directive (MiFID) has begun to stimulate greater competition between trade execution venues, but the fragmentation of liquidity and trade reporting has also caused confusion among buy-side institutions. Chris Hall reports.
- Buy Side Flocks to FX
REGISTERED VIEWERSAuto and algo trading techniques are being deployed by a wide range of buy-side firms in the increasingly crowded, but not always transparent, waters of the FX market. Chris Hall reports.
- All the News that’s Fit to Trade
REGISTERED VIEWERSNews has been moving financial markets since before Julius Reuter released his first pigeon. Chris Hall asks whether machine-readable news will give traders an edge.
- Baptism by Fire
REGISTERED VIEWERSExtreme volatility in the equity markets made August a testing month for both users of execution algorithms and automated trading strategies. Leading players explain the lessons for the future to Chris Hall.
- The Smart Money
REGISTERED VIEWERSAs MiFID opens the door to competition between equity trading venues in Europe, Chris Hall looks at how algorithmic trading will adapt to the new era of fragmented liquidity.
- A Global Round Trip
REGISTERED VIEWERSExchanges around the world are investing in new technology and services to attract a greater share of algorithmic and automated trading volumes. Chris Hall takes a whirlwind tour of the exchanges that are pulling out the stops to bring much-needed sources of liquidity to local markets.
- Pennies from Heaven?
REGISTERED VIEWERSAs the SEC’s six-month penny pilot scheme draws to a close in the US options market, Chris Hall reports on the initial impact on different market segments and asks whether decimalisation will open up the market for higher levels of automated and algorithmic trading.
- Catch Me if You Can
REGISTERED VIEWERSAutomated traders whose strategies depend on speed are turning to ‘true’ direct market access to avoid the latency burden of futures clearers’ pre-trade risk management tools. Chris Hall looks at clearers’ efforts to monitor trading risks without imposing unnecessary restraints on high-frequency clients.
- Autotrading CTAs
FREE ARTICLEGiven the number of CTAs with systematic rather than discretionary trading styles, CTAs as a breed would seem naturals for automated trading. But as Kim Hunter finds out, while they have been keen adopters of the technology, there are still plenty of leopards out there with the same old spots.
- Feature: Algo in Asia - Slow Burn or Damp Squib?
FREE ARTICLEWhile adoption of algorithmic trading in Asia is not as advanced as in Europe or the US, there are some indications of intent already emerging. For instance, several major broker dealers have started relocating experienced advanced order execution personnel to the region with the intention of building their algorithmic client base. Will they soon be basking by a bonfire of activity or struggling with soggy matches? Heather Mclean finds out.
- Feature: Jack Schwager - Making the grade
FREE ARTICLEThe number of hedge funds using automated and algorithmic trading has risen exponentially in recent years. That has made it hard for such funds to stand out from each other when pitching to allocators. One such allocator is Jack Schwager, who in addition to an illustrious career on Wall Street and the authorship of numerous investment classics, is also the principal investment manager of the Market Wizards Funds, the flagship fund of hedge funds series of the Fortune Group. AT talked to Mr Schwager about his views on automated trading and some of the criteria he uses when selecting managers.
- Feature: Colocation - A Game Worth the Candle?
FREE ARTICLEExchanges, networks and service providers are turning to the laws of physics in the race to reduce latency and win customers. But do colocation and proximity trading really offer substantial benefits worthy of the investment, or is it mainly a triumph of marketing over common sense?
- Feature: Is Fixed Income Ready to Hit Algo Street?
FREE ARTICLEFixed income has been long regarded as the Cinderella of algorithmic trading – while equities and then FX would enjoy the ball, fixed income would be left behind. However, while we may still be a long way from a glass slipper scenario, there are now glimmerings of real activity and serious intent from both the buy and sellside.