Algorithmic Trading: Faster Execution or Smarter Strategies?


The short answer is: You need both. Since the advent of the first high-frequency trading (HFT) firm, the quest for low-latency trading has been paramount. Strategies that were profitable before HFT are now obsolete. Among those strategies with questionable profitability today are: Arbitrage: Markets move too quickly to allow time for arbitrage. Market making: HFT imposes excessive risks on those traders. Event trading: Competing against HFT in terms of speed of response to scheduled economic reports and conventional news is impossible, since HFT systems can process and react to the information quicker. Faster execution is necessary to take advantage of short-term opportunities. Profitability is directly correlated to volume ... [ Read More ]

The Best Practices are No Longer the “Best” Practices – Part II


Earlier this week, I shared my views about best practices and cybersecurity. Now I want to move beyond best practices as your sole defense. The traditional cybersecurity mindset is one of prevention, believing threats cannot penetrate — and this is why security plans fail. It’s easy to assume defenses are successful against an insidious threat. Metrics will show an effective compliance program, intrusion detection and access denial. Yet to take for granted that the threat is gone, rather than having simply moved to another path within your network, is foolhardy. Assuming there are numerous threats to your security measures that are coming in a dynamic and continuous fashion may seem paranoid, but just because you’re paranoid doesn’t mean ... [ Read More ]

Q&A: The World of Big Data in the Financial Industry – HPC to the Rescue

Fincial Q&A

Big data is beginning to have a major impact on the financial services sector, and many organizations in the industry are finding themselves in a situation in which they need to adopt analytics solutions for big data. This has left many financial services firms struggling to figure out how they can deploy technologies that meet their big data needs. High-performance computing systems have incredible potential in this area. To help you get acclimated with how HPC systems can help support big data, we got together with Austin Trippensee, Functional Solutions Architect at YarcData. What industry and economic factors are pushing financial services firms to engage in big data strategies? New regulations, expanded product portfolios, and ... [ Read More ]