High Frequency Trading Explained

a software executive in a spread-collar shirt and a flashy watch pressed a button at the New York Stock Exchange, triggering a bell that signaled the start of the trading day. Milliseconds after the opening trade, buy and sell orders began zapping across the market's servers with alarming speed. The trades were obviously unusual. They came in small batches of 100 shares that involved nearly 150 different financial products, including many stocks that normally don't see anywhere near as much activity. Within three minutes, the trade volume had more than doubled from the previous week's average.

Soon complex computer programs deployed by financial firms swooped in. They bought undervalued stocks as the unusual sales drove their prices down and sold overvalued ones as the purchases drove their prices up. The algorithms were making a killing, and human traders got in on the bounty too. trading markets "stock market" "share price" "high frequency trading" profit "wall street" "forex trading" nasdaq ftse100 2015 106 crash collapse auto algorithm shares banking savings "bank account" "savings account" commodity u.s. usa europe "united states" buy sell asset tech technology "sell gold" apple "binary options" "binary options trading" demo account london news knowledge trendy entertainment "elite nwo agenda" bullion "get rich" wealth gbp usd rawdogletard jsnip4 demcad coast to coast am marc faber doom gloom end times false flag attack montagraph prediction anonymous protest riots uprising sheeple george soros bilderberg 2015 alex jones infowars gerald celente max keiser trews

This is the very manner by which capitalism advances in fact. And the end result in HFT is going to be that we’ll all enjoy the lower dealing spreads that the extra liquidity brings to the market thanks to all of those robots trading away looking for the super profits that no longer exist. If you prefer to think of it this way, HFT isn’t evidence of a problem it’s evidence that our basic economic system works as indicated upon the tin. Technological advance makes super profits, capitalists are greedy, so technological advance spreads quickly, super profits disappear and the consumer benefits.The Markets Group at the Federal Reserve Bank of New York manages the size and composition of the Federal Reserve System’s balance sheet consistent with the directives and the authorization of the Federal Open Market Committee (FOMC), supports debt issuance and debt management on behalf of the U.S. Treasury, provides foreign exchange services to the U.S. Treasury and provides account services to foreign central banks, international agencies and U.S. government agencies.

Some market technicians have transferred from New York and others were hired at the office housed in the Chicago Fed, according to several people familiar with the build-out that began about two years ago, after Hurricane Sandy struck Manhattan. The satellite office in the Midwest readies the New York Fed for perhaps the most delicate U.S. interest-rate hike ever. With rates having been near zero for more than six years, and markets flooded with reserves, the Fed will rely on an array of new tools to help it tighten policy, likely later this year. The world was slow to wake up to the new reality in which China is now the de facto IMF sovereign backstop, as Zero Hedge described two weeks ago in “China Prepares To Bailout Russia” when we noted that a PBOC swap-line was meant to reduce the role of the US dollar if China and Russia need to help each other overcome a liquidity squeeze, something we first noted over two months ago in “China, Russia Sign CNY150 Billion Local-Currency Swap As Plunging Oil Prices Sting Putin.”