I hear that some Hedge Funds and Institutional Investors are going beyond HFT trading by doing Parallel programming of heterogeneous systems using power of CPU, GPU and FPGA for ultimate ultra low latency trading system. This system enqables them to complete the trading process in couple of micro seconds, till date its the fast system developed by the traders. The more faster the system gets, it can generate more trades in a day thus generating more revenue for the company, I guess thats the reason we see market wide fluctuation now a days. While SEC and FINRA are working hard investigating suspicious market activity and demading secret high-frequency trading computer codes from HFT trading firms, Hedge Funds, Institutional Investors and other HFT trading firms worldwide are busy developing robust trading system that does not care about company’s fundamentals, it just does trade exclusively on down ticks and up ticks. The Novel System is designed to make a penny of profit but with several millions of trades per terminal and 100′s of such HFT Algos/Codes systems worldwide… It’s your Guess!
Posts Tagged ‘Financial Industry Regulatory Authority’
Tags: algo trading, Algorithmic trading, Central processing unit, CPU, electronic trading systems, Field-programmable gate array, Financial Industry Regulatory Authority, FPGA, GPU, Graphics processing unit, Hedge fund, High-frequency trading, Low latency trading, Programming, Stock trading system, system, trading
Tags: Algo, algo trading, codes, Financial Industry Regulatory Authority, FINRA, Hedge fund, HFT, High-frequency trading, SEC, Securities and Exchange Commission, Trading strategy, U.S. Securities and Exchange Commission, US, Vice president, Wall Street
U.S. securities regulators have taken the unprecedented step of asking high-frequency trading firms to hand over the details of their trading strategies, and in some cases, their secret computer codes.
The requests for proprietary code and algorithm parameters by the Financial Industry Regulatory Authority (FINRA), a Wall Street brokerage regulator, are part of investigations into suspicious market activity, said Tom Gira, executive vice president of FINRA’s market regulation unit.
“It’s not a fishing expedition or educational exercise. It’s because there’s something that’s troubling us in the marketplace,” he said in an interview.
The Securities and Exchange Commission, meanwhile, has also begun making requests for proprietary algorithmic trading data as part of its authority to examine financial firms for compliance with U.S. regulations, according to agency officials and outside lawyers.
The requests by SEC examiners are not necessarily related to any suspicions of specific wrong-doing, although the decision to ask for it can be triggered by a tip, complaint or referral.
According to interviews with attorneys, traders, industry executives and regulators, the unusual requests for algo code and other computerized trading strategies really ramped up this year and have targeted stock-trading firms such as broker dealers and hedge funds.
It has alarmed some traders who are afraid their “secret sauce” — intellectual property sometimes developed over years and at great cost — could get into the wrong hands, especially when SEC and FINRA examiners leave for the private sector.