Power of CPU, GPU and FPGA for ultimate ultra low latency trading system !

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!

Will you hand over your secret high-frequency trading codes to SEC & FINRA?

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.

http://www.reuters.com/article/2011/09/01/us-financial-regulation-algos-idUSTRE7806J420110901

Future trends and technology investment for High Speed and Secure Trading System!

The financial services industry has changed drastically and evolved greatly owing to the economic crisis,
regulatory issues, competitive pressures and increasing customer needs. Today, IT plays a significant role
as a major operative and competitive requirement for financial institutions. Thus changing the future trends
and technology investment in Mobile Trading applications and High frequency trading (HFT)/ Algorithmic trading
(Algo trading)
Here are few technology trends or recommended improvements every investment bank must take note of :

Faster and better and mobile electronic trading systems will continue increased IT spending
Increased focus on electronic trading, including Ultra lower latency, co-location and access to new electronic
trading venues like mobile trading and direct data feeds from exchanges
Increased spending on derivative trading systems, both for ETD and OTC :
Both ETD and OTC derivatives will see an increase in volume; and with new rules (dodd frank bill) requiring
OTC products to move onto exchanges, with CCPs acting as clearers, new systems will have to be put
into place to manage the required collateral and margin.
Firms will have to invest in upgrading their risk management system :
Increased trading volumes, faster trading, more diverse types of securities traded, and new margining
and collateral rules will require that firms have capable risk management systems
Improving front-office, middle office and back office system capabilities
Firms will continue their perennial struggle to improve their middle and back office systems in order to
keep up with the ever increasing amount of trade volume – driven higher more quickly by the increase in
electronic trading systems. Wealth management firms will focus on upgrading advisor workstations and facilitating
customer communication
A focus on integration of multi-platform
New trend is to work off a single platform across the enterprise. Wealth management firms will continue to
focus on process and data integration.

Investment banks and Hedge fund firms rely on VitalVest for their Financial Services/Computer IT Consulting

Chief information officer (CIO), or information technology (IT) director, is a job title commonly given to the most senior executive in an enterprise responsible for the information technology and computer systems that support enterprise goals. In Financial Services and Investment Banking, an industry focused on data and financial analysis, technology is as much a part of the business as the traders, portfolio managers and risk managers who develop financial products. In Electronic Financial Markets, algorithmic trading or automated trading, also known as “high-frequency trading” (HFT), Low-latency trading, algo trading, black-box trading or robo trading, is the use of computer programs for entering trading orders with the computer algorithm deciding on aspects of the order such as the timing, price, or quantity of the order, or in many cases initiating the order without human intervention. Effective management of information technology resources that support the business has always been a priority for financial services CIOs. However, now that financial firms are beginning to once again cut staff and expenses as the banking industry faces cost pressures and declining revenues, efficient IT systems management is vital for technology executives.

Without the ability to run an integrated and cost effective IT organization, CIOs risk not being able to respond to business goals and provide technology support to the portions of the enterprise that drive business. Most of the Investment banks and Hedge fund firms rely on VitalVest c/o NHP Consulting LLC., for their Financial Services/Computer IT Consulting. We have been serving Wall Street clients for almost 12 years and know the financial service industry inside out.

The principals at NHP Consulting LLC has been instrumental with designing and architecting several enterprise-wide solutions. We have deep knowledge and experience with implementing Electronic Trading, Connectivity, Middle-office and Regulatory Compliance Reporting solutions. We are equally knowledgeable and Experienced within Java,Open Source and Microsoft technologies. We have worked with several global major firms within Capital Markets segment.