Monday, 29 December 2014
Last updated 50 min ago
Aug 17 2011 | 12:47am ET
As Traxis Partners’ Barton Biggs suspected, high frequency traders were a big part of this month’s stock market volatility.
HFT firms tripled their trading between Aug. 1 and Aug. 10, Wedbush Securities’ Gary Wedbush told Bloomberg News. For the stock market as a whole, trading volume increased only 80%. Between Aug. 4 and Aug. 10, equity trading volume set a five-day record, slightly higher than the volume following Lehman Brothers Holdings’ bankruptcy filing in 2008.
“We’re seeing a tremendous amount of high-frequency trading,” Wedbush said. “Their business is a trading business, and volatility creates far more opportunities. Some of their algorithms and automated systems are trading two, three or five times as many shares as they would in a more normalized environment.”
According to Wedbush, HFT firms have made up some 75% of U.S. equity volume this month.
Earlier this month, an unhappy Biggs said that he suspected “that we’re now into a high-frequency trading, momentum-driven cascading downturn.”
“I don’t understand what’s going on,” Biggs said, adding that he had reluctantly cut Traxis’ risk to protect capital.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.