Frequency TRADING

Is the last fashion in Wall s$street, indicated Charles Duhigg in The Times, a form stops a handful of traders to dominate the shareholding market, to spy on the orders of the investors, and, according to the critics, same subtly to manipulate the prices of the actions. High Frequency TRADING is called – and of blow she is one of the operating ones of which it is spoken and it been more a mysterious force of the market. Click New York museums to learn more. Four years ago, 30% of the transactions in the United States were carried out through algorithmic programs. Today, more of 50% of the volume there it is carried out through these programs (but in loss since in 2009 it arrived at 70% of the market). The last trimester of the 2010 HFT a third of the volume of the energy futures took almost according to a report of the CME Group, proprietor of New York Mercantile Exchange (NYMEX). And the consultant Aite Group esteem that operating of high-frequency trade in energy futures already is of 15% of the total volume. Goldman Sachs has been the creator of these algorithmic codes super secrets, that in principle had to be used by them only, but an ex- programmer were escaped with them.

Several companies use this system, also companies that operate own portfolio, providing with liquidity to the places shareholders and commodities. Esteem that GS obtains 25% of its gains through HFT. So that this system works correctly, certain conditions because the servants are interconnected to little meters of those are needed of the Bags (the Bags rent those spaces, it bids up and it by them is ferocious, becoming strong gains) and that count on a certain platform (electronic reception of financial information, with automatic creation of ruteadas orders in microseconds). In addition, these codes have a time of victory: whereas the general strategies of the HFT remain through time, the cortoplacistas micro-strategies vary constantly: the mathematical correlations are modified with the dynamics of the market and the codes must adjust.

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