high frequency trading

His Citadel LLC returned more than 300 percent in a fund started as a high-frequency strategy in late 2007, according to two people familiar with the Chicago-based money manager. The $830 million pool, which added other strategies in recent years, beat the 44 percent gain of the U.S. stock market in the six years through 2013 as well as Griffin’s two main hedge funds, which together have $8.8 billion in assets and rose 45 percent in the period. [Bloomberg]

Michael Lewis thinks high-frequency traders are bad guys. But he also thinks that Brad Katsuyama is a good guy. And Brad Katsuyama thinks that, as bad guys go, Virtu Financial—which just happens to be planning an IPO—is pretty good. Which adds up to something, we’re sure, that Virtu would be happy to let you know about during its whistle-stop/barnstorming “we’re the best you’ve got” tour. Read more »

And no one is trying to step on Big Al’s toes, says some guy. Read more »

  • 23 Aug 2013 at 1:46 PM

CFTC Ready To Slow Down High-Frequency Trading

In quaint, anachronistic terms, the regulator is creating a “road map” to figure out how to keep HFT from ruining everything. Eventually. Read more »

Poor Fab, but it could be worse. Michael Lewis has a heartbreaking, enraging story in Vanity Fair about poor Sergey Aleynikov, the former Goldman programmer and current Dostoyevskyan holy fool who was sentenced to federal prison for eight years for stealing computer code from Goldman, won a complete victory on appeal, was released, has lost his life savings, and is now being prosecuted under state law just because Goldman, or someone, but probably Goldman, really hates him. It is troubling stuff not least for Lewis’s clear implication that a jury trial may not be the best way to arrive at the truth regarding complex financial-technological questions. E.g.: Read more »

An important element of any Wall Street education is figuring out what shady practices will win you a reputation as a genius, what shady practices will win you a reputation as a scumbag, and what shady practices will win you a prison sentence. There is substantial overlap!1 That education is extremely contextual, and your intuitions about what shadiness flies in one business won’t necessarily help you in another, or in court for that matter. For instance I grew up in a corporate equity business, so I’d be happy to tell you why Yahoo!’s share repurchase from Dan Loeb wasn’t insider trading but you can probably figure that out on your own. Meanwhile I have no idea what to make of spoofing, but it seems like Panther Energy Trading did some of it, and now they are in trouble: Read more »

The Financial Times has an article today called “Greece reaches agreement with ‘troika’ on bailout tranche” and I’m not going to tell you about it but you can go read it if you want. If you’re an FT subscriber just click on this link and there you are. If not, maybe try typing that title into Google and clicking on the first result you get; that’ll probably work, no guarantees. Or, like, go buy a copy of the paper?

That’s the way a lot of news works: if you have an internet connection and a desire to get it, you probably can, but if for idiosyncratic reasons you want to get it quickly and reliably – say, you invest in Greek debt and need to know what’s going on for trading purposes – the way to do that is to pay for it. As a corollary, the way to get more of it more quickly and reliably is to pay more for it. If you clicked that link and you’re not a subscriber you probably saw something like this: Read more »