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High-frequency Trading
High-frequency trading (HFT) is a type of algorithmic trading in finance characterized by high speeds, high turnover rates, and high order-to-trade ratios that leverages high-frequency financial data and electronic trading tools.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; . While there is no single definition of HFT, among its key attributes are highly sophisticated algorithms, co-location, and very short-term investment horizons in trading 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 2016, HFT on average initiated 10–40% of trading volume in equities, and 10–15% of volume in foreign exchange and commodities. High-frequency traders move in and out of short-term positions at high volumes and high speeds aiming to capture sometimes a fraction of a cent in profit on ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Algorithmic Trading
Algorithmic trading is a method of executing orders using automated pre-programmed trading instructions accounting for variables such as time, price, and volume. This type of trading attempts to leverage the speed and computational resources of computers relative to human traders. In the twenty-first century, algorithmic trading has been gaining traction with both retail and institutional traders. A study in 2019 showed that around 92% of trading in the Forex market was performed by trading algorithms rather than humans. It is widely used by investment banks, pension funds, mutual funds, and hedge funds that may need to spread out the execution of a larger order or perform trades too fast for human traders to react to. However, it is also available to private traders using simple retail tools. The term algorithmic trading is often used synonymously with automated trading system. These encompass a variety of trading strategies, some of which are based on formulas and results ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
New York Times
''The New York Times'' (''NYT'') is an American daily newspaper based in New York City. ''The New York Times'' covers domestic, national, and international news, and publishes opinion pieces, investigative reports, and reviews. As one of the longest-running newspapers in the United States, the ''Times'' serves as one of the country's Newspaper of record, newspapers of record. , ''The New York Times'' had 9.13 million total and 8.83 million online subscribers, both by significant margins the List of newspapers in the United States, highest numbers for any newspaper in the United States; the total also included 296,330 print subscribers, making the ''Times'' the second-largest newspaper by print circulation in the United States, following ''The Wall Street Journal'', also based in New York City. ''The New York Times'' is published by the New York Times Company; since 1896, the company has been chaired by the Ochs-Sulzberger family, whose current chairman and the paper's publ ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Citadel LLC
Citadel LLC (formerly known as Citadel Investment Group, LLC) is an American multinational hedge fund and financial services company. Founded in 1990 by Kenneth Griffin, it has more than $65 billion in assets under management . The company has over 2,900 employees, with corporate headquarters in Miami, Florida, and offices throughout North America, Asia, and Europe. Founder, CEO and Co-CIO Griffin owns approximately 85% of the firm. As of December 2022, Citadel is one of the most profitable hedge funds in the world, posting $74 billion in net gains since its inception in 1990, making it the most successful hedge fund in history, according to ''CNBC''. Citadel LLC is a separate entity from the market maker Citadel Securities, although both were founded and are owned by Griffin. History Founding, 1990–2000 Griffin started his trading career out of his dorm room at Harvard University in 1987, trading convertible bonds. As a sophomore, he hooked a satellite dish to the roo ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Akuna Capital
Akuna Capital is an American proprietary trading firm headquartered in Chicago. It has additional offices in London, Shanghai, and Sydney. Background Akuna Capital was co-founded by Andrew Killion in 2011 in Chicago. Killion was previously a partner at Optiver and had left his hometown of Sydney in 2011 to move to Chicago. Chicago was selected to launch Akuna Capital as it was considered the center of the world for derivatives and options. The word Akuna comes from an Australian Aboriginal word that means flowing water. Akuna Capital has an affiliated broker-dealer named Akuna Securities. According to Bloomberg News, Akuna Capital had one of the highest monthly salaries for internships in the financial sector from 2021 to 2022. History In 2015, Akuna Capital signed a deal with the state of Illinois worth $4.5 million in tax breaks. Under the deal, Akuna Capital would hire ten new employees where five would be in trading and five would be in software. In 2019, Akuna ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Tradebot
Tradebot Systems, Inc. is a high-frequency equity trading firm in the US. Based in Kansas City, Missouri, they regularly account for 5% of the total trading volume in the US stock market. According to the founder, Dave Cummings, as of 2008, the firm "typically held stocks for 11 seconds", and "had not had a losing day in 4 years". That streak continued uninterrupted until 2017. History The firm was founded in 1999 and had an early relationship with fellow high-frequency trading shop Getco. In 2005 Cummings left Tradebot to start a new electronic market, which he called the Better Alternative Trading System. That market eventually became the BATS Exchange. In 2007 Cummings left BATS to return to Tradebot. The firm is affiliated with Tradebot Ventures, Tradebot Properties, Tatora and Auxby. In summer 2014, New York attorney general Eric Schneiderman accused Barclays of hiding that Tradebot was one of the largest participants in their dark pool. Tradebot was not accused of an ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
IMC Financial Markets
IMC Financial Markets, sometimes referred to as IMC Trading, is a proprietary trading firm and market maker for various financial instruments listed on exchanges throughout the world. Founded in 1989 as International Market makers Combination, the company employs over 1500 people and has offices in Amsterdam, Chicago, Sydney, Hong Kong, Mumbai and other places. History IMC was founded in 1989 by Rob Defares and René Schelvis, two traders working on the floor of the Amsterdam Equity Options Exchange. In 2008, Wiet Pot joined as co-CEO alongside Defares. Pot left the board in September 2017, leaving Defares as sole CEO. Trading IMC is a technology-driven trading firm active in over 100 trading venues, offering liquidity to over 200,000 securities. IMC makes markets in the major exchange-traded instruments – equities, bonds, commodities, and currencies – on 100 exchanges worldwide and is a significant liquidity provider on the NYSE Arca, NASDAQ, CBOE, BATS Bats are ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Tower Research Capital
Tower Research Capital (also known as Tower Research) is an American quantitative trading firm. Tower Research is headquartered in New York, with additional offices in Chicago, South Charleston, Montreal, London, Amsterdam, Gurgaon, GIFT City, Singapore, Hong Kong, and Shanghai. History Tower Research Capital is one of the oldest automated trading firms. It was started by Mark Gorton and Alistair Brown in February 1998. Tower's internal trading teams are independent from one another, enjoying autonomy while accessing shared technology resources such as hardware, software, and connectivity as well as resources such as business management, legal, compliance, and risk management. Tower is connected to more than 150 global trading venues. At the heart of operations is the core engineering team, which owns the architecture, implementation and optimization of the trading platform itself. This includes developing systems and tools to access market data, perform trend analysis, run t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Virtu Financial
Virtu Financial, Inc. is an American high-frequency trading company. The company went public on the Nasdaq in 2015. Organization Based in New York City, Virtu was founded by Vincent Viola, a former chairman of the New York Mercantile Exchange and current owner of the Florida Panthers.Man Vs. Machine: Seven Major Players in High-Frequency Trading CNBC, September 13, 2010 Douglas Cifu, Virtu's CEO since October 2013, co-founded Virtu with Viola in 2008. Cifu is also a co-owner of the Florida Panthers with Viola and serves as the Panthers’ alternate governor. Prior to co-founding Virtu, Cifu was a partner at the international law firm of Paul, Weiss, Rifkind, Wharton & Garrison LLP, where he practiced corporate law from 1990 to 2008. T ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Market Makers
A market maker or liquidity provider is a company or an individual that quotes both a buy and a sell price in a tradable asset held in inventory, hoping to make a profit on the difference, which is called the '' bid–ask spread'' or ''turn.'' This stabilizes the market, reducing price variation ( volatility) by setting a trading price range for the asset. In U.S. markets, the U.S. Securities and Exchange Commission defines a "market maker" as a firm that stands ready to buy and sell stock on a regular and continuous basis at a publicly quoted price. A Designated Primary Market Maker (DPM) is a specialized market maker approved by an exchange to guarantee a buy or sell position in a particular assigned security, option, or option index. In currency exchange Most foreign exchange trading firms are market makers, as are many banks. The foreign exchange market maker both buys foreign currency from clients and sells it to other clients. They derive income from the trading price diff ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Renaissance Technologies
Renaissance Technologies LLC (also known as RenTec or RenTech) is an American hedge fund based in East Setauket, New York, on Long Island, that specializes in systematic trading using quantitative models derived from mathematical and statistical analysis. Renaissance was founded in 1982 by James Simons, a mathematician who worked as a code breaker during the Cold War. In 1988, the firm established the Medallion Fund, a form of Leonard Baum's mathematical models expanded by algebraist James Ax, to explore correlations from which it could profit. The hedge fund was named Medallion in honor of the math awards Simons and Ax had won. Simons ran Renaissance until his retirement in late 2009. He continued to play a role at the firm as non-executive chairman until 2021. He remained invested in its funds, particularly the Medallion fund, until his death in 2024. The company is now run by Peter Brown (after Robert Mercer resigned). Both were computer scientists specializing in c ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
2008 Financial Crisis
The 2008 financial crisis, also known as the global financial crisis (GFC), was a major worldwide financial crisis centered in the United States. The causes of the 2008 crisis included excessive speculation on housing values by both homeowners and financial institutions that led to the 2000s United States housing bubble, exacerbated by predatory lending for subprime mortgages and deficiencies in regulation. Cash out refinancings had fueled an increase in consumption that could no longer be sustained when home prices declined. The first phase of the crisis was the subprime mortgage crisis, which began in early 2007, as mortgage-backed securities (MBS) tied to U.S. real estate, and a vast web of Derivative (finance), derivatives linked to those MBS, collapsed in value. A liquidity crisis spread to global institutions by mid-2007 and climaxed with the bankruptcy of Lehman Brothers in September 2008, which triggered a stock market crash and bank runs in several countries. The crisis ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
