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Dark Liquidity
In finance, a dark pool (also black pool) is a private forum (alternative trading system or ATS) for trading securities, derivatives, and other financial instruments."The New Financial Industry" (March 30, 2014). 65 ''Alabama Law Review'' 567 (2014); Temple University Legal Studies Research Paper No. 2014-11; via SSRN. Liquidity on these markets is called dark pool liquidity. The bulk of dark pool trades represent large trades by s that are offered away from public ex ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Finance
Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, the study of production, distribution, and consumption of money, assets, goods and services (the discipline of financial economics bridges the two). Finance activities take place in financial systems at various scopes, thus the field can be roughly divided into personal, corporate, and public finance. In a financial system, assets are bought, sold, or traded as financial instruments, such as currencies, loans, bonds, shares, stocks, options, futures, etc. Assets can also be banked, invested, and insured to maximize value and minimize loss. In practice, risks are always present in any financial action and entities. A broad range of subfields within finance exist due to its wide scope. Asset, money, risk and investment management aim to maximize value and minimize volatility. Financial analysis is viability, stability, and profitabil ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Payment For Order Flow
Payment for order flow (PFOF) is the compensation that a stockbroker receives from a market maker in exchange for the broker routing its clients' trades to that market maker. It is a controversial practice that has been called a " kickback" by its critics. Policymakers supportive of PFOF and several people in finance who have a favorable view of the practice have defended it for helping develop new investment apps, low-cost trading, and more efficient execution. In general, market makers like Citadel LLC, Virtu Financial, and Susquehanna International Group are willing to pay brokers for the right to fulfill small retail orders. The market maker profits from the bid-ask spread and rebates a portion of this profit to the routing broker as PFOF. Another fraction of a penny per share may be routed back to the consumer as price improvement. Brokers in the United States that accept payment for order flow include Robinhood, E-Trade, Ally Financial, Webull, Tradestation, The Vanguard ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Adverse Selection
In economics, insurance, and risk management, adverse selection is a market situation where buyers and sellers have different information. The result is that participants with key information might participate selectively in trades at the expense of other parties who do not have the same information. In an ideal world, buyers should pay a price which reflects their willingness to pay and the value to them of the product or service, and sellers should sell at a price which reflects the quality of their goods and services. For example, a poor quality product should be inexpensive and a high quality product should have a high price. However, when one party holds information that the other party does not have, they have the opportunity to damage the other party by maximising self-utility, concealing relevant information, and perhaps even lying. Taking advantage of undisclosed information in an economic contract or trade of possession is known as adverse selection. This opportunity ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Price Discovery
In economics and finance, the price discovery process (also called price discovery mechanism) is the process of determining the price of an asset in the marketplace through the interactions of buyers and sellers. Overview Price discovery is different from valuation. Price discovery process involves buyers and sellers arriving at a transaction price for a specific item at a given time. It involves the following: http://agecon.okstate.edu/pricing/ Pricing and Price discovery Issues * Buyers and seller (number, size, location, and valuation perceptions) * Market mechanism (bidding and settlement processes, liquidity) * Available information (amount, timeliness, significance and reliability) including futures and other related markets * Risk management choices. "Market" is a broad term that covers buyers, sellers and even sentiment. A single market will have one or more execution venues, which describes where trades are executed. This could be in the street for a street market, or ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Market Depth
In finance, market depth is a real-time list displaying the quantity to be sold versus unit price. The list is organized by price level and is reflective of real-time market activity. Mathematically, it is the size of an order needed to move the market price by a given amount. If the market is ''deep'', a large order is needed to change the price. Factors influencing market depth * Tick size. This refers to the minimum price increment at which trades may be made on the market. The major stock markets in the United States went through a process of decimalisation in April 2001. This switched the minimum increment from a sixteenth to a one hundredth of a dollar. This decision improved market depth.Market Depth Investopedia *Price movement restrictions. Most major financial markets do not allow completely free exchange of the product ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Tabb Group
Tabb may refer to: Places *Tabb, Virginia, an unincorporated community in York County *Tabb, West Virginia, an unincorporated community in Berkeley County Other uses *Tabb (surname) *Tabb High School, in Tabb, Virginia (York County) *Tabb Monument, in Amelia County, Virginia *Tabb Street Presbyterian Church Tabb Street Presbyterian Church is a historic Presbyterian church located at Petersburg, Virginia. It was designed by architect Thomas Ustick Walter and built in 1843, in the Greek Revival style. It has stucco covered brick walls and features ..., in Petersburg, Virginia See also * * Tab (other) * Tabby (other) {{disambiguation, geo ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
High-frequency Trading
High-frequency trading (HFT) is a type of algorithmic financial trading characterized by high speeds, high turnover rates, and high order-to-trade ratios that leverages high-frequency financial data and electronic trading tools. While there is no single definition of HFT, among its key attributes are highly sophisticated algorithms, co-location, and very short-term investment horizons. HFT can be viewed as a primary form of algorithmic trading in finance.Lin, Tom C. W. "The New Financial Industry" (March 30, 2014). 65 Alabama Law Review 567 (2014); Temple University Legal Studies Research Paper No. 2014-11; . Specifically, it is the use of sophisticated technological tools and computer algorithms to rapidly trade securities. HFT uses proprietary trading strategies carried out by computers to move in and out of positions in seconds or fractions of a second. In 2017, Aldridge and Krawciw estimated that in 2016 HFT on average initiated 10–40% of trading volume in equities, and 10 ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Consolidated Tape System
The Consolidated Tape System (CTS) is the electronic service, introduced in April 1976, that provides last sale and trade data for issues admitted to dealings on the American Stock Exchange, New York Stock Exchange, and U.S. regional stock exchanges. The Consolidated Tape Association (''CTA'') is the operating authority for both the Consolidated Quotation System (CQS) and the Consolidated Tape System (CTS). See also * Market data * National market system plan * Ticker tape Ticker tape was the earliest electrical dedicated financial communications medium, transmitting stock price information over telegraph lines, in use from around 1870 through 1970. It consisted of a paper strip that ran through a machine called ... References Financial markets Self-regulatory organizations in the United States {{Stockexchange-stub ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Order Book (trading)
An order book is the list of orders (manual or electronic) that a trading venue (in particular stock exchanges) uses to record the interest of buyers and sellers in a particular financial instrument. A matching engine uses the book to determine which orders can be fully or partially executed. Order book in securities trading In securities trading, an order book contains the list of buy orders and the list of sell orders. For each entry it must keep among others, some means of identifying the party (even if this identification is obscured, as in a dark pool), the number of securities and the price that the buyer or seller are bidding/asking for the particular security. Price levels When several orders contain the same price, they are referred as a price level, meaning that if, say, a bid comes at that price level, all the sell orders on that price level could potentially fulfill that. Crossed book When the order book is part of a matching engine, orders are matched as the ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
FAST Protocol
The FAST protocol ( FIX Adapted for STreaming) is a technology standard developed by FIX Protocol Ltd., specifically aimed at optimizing data representation on the network. It is used to support high-throughput, low latency data communications between financial institutions. In particular, it is a technology standard that offers significant compression capabilities for the transport of high-volume market data feeds and ultra low latency applications. History Timeline * 2004 Market Data optimization Working Group (“mdowg”) was formed * 2005 Proof of Concept (“POC”) project * 2006 FAST 1.0 released * 2007 FAST 1.1 released * 2009 FAST 1.2 proposed In November 2004, Mike Cormack (then CEO Archipelago Holding) spoke at the FPL (FIX Protocol Ltd) conference in New York regarding a call for action to meet the challenges of the increased market data volumes. The increasing volumes of market data were causing delays, preventing market d ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Financial Information EXchange
The Financial Information eXchange (FIX) protocol is an electronic communications protocol initiated in 1992 for international real-time exchange of information related to securities transactions and markets. With trillions of dollars traded annually on the NASDAQ alone, financial service entities are employing direct market access (DMA) to increase their speed to financial markets. Managing the delivery of trading applications and keeping latency low increasingly requires an understanding of the FIX protocol. History The FIX protocol specification was originally authored in 1992 by Robert "Bob" Lamoureux and Chris Morstatt to enable electronic communication of equity trading data between Fidelity Investments and Salomon Brothers. FIX initially addressed information between broker-dealers and their institutional clients. At the time, this information was communicated verbally over the telephone. Fidelity realized that information from their broker-dealers could be routed to t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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