(August 20, 2012, New York) Renee DiResta writes in O'Reilly Radar that technology is both critical to today's financial markets and surprisingly controversial. In most industries, increasing technological involvement is progress, not a problem. And yet, people who believe that computers should drive cars suddenly become Luddites when they talk about computers in trading.
Renee spent about six years as a trader, using automated systems to make markets and execute arbitrage strategies. From 2004-2011, as their algorithms and technology became more sophisticated, it was increasingly rare for a trader to have to enter a manual order. Even in 2004, "manual" meant instructing an assistant to type the order into a terminal; it was still routed to the exchange by a computer.
Automating orders reduced the frequency of human "fat finger" errors. It meant that they could adjust their bids and offers in a stock immediately if the broader market moved, which enabled them to post tighter markets. It allowed them to manage risk more efficiently. More subtly, algorithms also reduced the impact of human biases - especially useful when liquidating a position that had turned out badly. Technology made trading firms more profitable, but it also benefited the people on the other sides of those trades. They got tighter spreads, deeper liquidity and quality-conferences, such as upcoming High Frequency Trading Leaders Forum 2012, this time in three of the world's most important financial centers: Chicago and London.
High Frequency Trading Leaders Forum 2012, How Knight Capital's 'Knightmare on Wall Street' Could Transform the Regulatory Landscape and Impact Investors, Speed Traders and Brokers", will provide attendees in Chicago and London with the most up-to-date review of where this ever-changing industry stands and how new technology and regulatory developments will impact it. Recognized experts, regulators, and strategists, will return to High-Frequency Trading Leaders Forum 2012 to provide the information practitioners are looking for in an open and unbiased environment, highly conducive to the most efficient and effective networking.
With insightful keynote speeches and highly regarded panels, everybody involved in high-frequency trading will gain inside knowledge about the latest technologies that can drastically optimize HFT infrastructures and take a first look at upcoming regulations that could radically change the HFT firms' business model. Topics that will be discussed at High Frequency Trading Leaders Forum 2012 include the movement toward emerging markets, every time more attuned to the use of bots, the regulatory environment, how new technologies are changing the game, including FPGA applications, and a look at the upcoming regulatory changes that will definitely impact how speed traders capture alpha.
High Frequency Trading Leaders Forum 2012 is produced by Golden Networking (http://www.goldennetworking.net), the premier networking community for business executives, entrepreneurs and investors. Panelists, speakers and sponsors are invited to contact Golden Networking by sending an email to firstname.lastname@example.org.