The growth prospects for the high-frequency trading industry are on the wane, and firms that once emphasized speed now need to focus on strategy, according to market research firm IBISWorld. Since 2007, revenues for HFT firms climbed 11.6 percent per year on average to the tune of about $28.1 billion through 2012, IBISWorld said in its latest report. That figure includes an expected increase of 6.2 percent this year. But IBISWorld cautioned that most of that growth came in the early portion of the five-year period ranging between 2007 and 2012, with revenues now beginning to slow down. The firm said much of that growth was driven by HFT firms snapping up shares of stocks that traditional investors were unloading ahead of the financial crisis.
Now the industry could be constrained by the Dodd-Frank law, the Volcker Rule in particular, the report said. "The enactment of the Dodd-Frank Act in 2012 placed a blanket of scrutiny and uncertainty over the industry," IBISWorld's report said. "This legislation's Volcker Rule banned banks from engaging in proprietary trading. As such, banks have begun to sell off their proprietary trading operations to individual high-frequency trading firms, limiting the size of the industry."
Is it time to turn off the machines and go to the beach? Not really, says Edgar Perez, America's Ultimate Networker (http://www.AmericasUltimateNetworker.com), founder of Golden Networking, and host of High Frequency Trading Happy Hour business receptions which now bring together a who's who of the speed trading world for productive evenings of networking and cocktails. Traders, quants, managers, investors, allocators, service providers and consultants get together in five cities every month, should get ready for further growth opportunities, as high-frequency trading is merely the application of technology to trading and finance. In fact, service providers have also found these receptions tremendously valuable to participate at, as they get to enjoy terrific benefits:
· Unequaled opportunities to reach key decision makers in the high-frequency trading community
· Direct global exposure to hundreds of high-quality attendees
· Enhanced credibility and business opportunity with managers, quants, advisors, consultants, service providers and individual and institutional investors
· Expanded marketing reach by tapping into Golden Networking's global database of 100,000 finance professionals
· Direct exposure on Golden Networking's website and the driving of additional, qualified traffic to your website
Practitioners represented in past editions of High-Frequency Trading Happy Hour include companies such as Alaris Trading Partners, Andrews Securities, Atlantic Advisory Group, Avatar, Capital Advisors, Citadel, Citi, CNBC, Comscient, Credit Suisse, DE Shaw, Deutsche Bank, Duane Morris, Eagle View Asset Management, Falcon Technology Systems, Garrett Asset Management, GETCO, Goldman Sachs, Greyfields, Infinium Capital, Lightspeed, Lime Brokerage, Mahogany Partners, MNG Capital , Monolith Capital Trading Partners, Morgan Stanley, MSF Capital Advisors, Nirvana Capital, Nobilis Capital, OneMarketData, OneTick, SBS Securities, Selerity, Silver Leaf Partners, Traderworx, Twin Capital Management, UBS, among others.More information about sponsorship opportunities can be requested writing to firstname.lastname@example.org. High-Frequency Trading Happy Hour is produced by Golden Networking (www.goldennetworking.net), the premier networking community for business executives, entrepreneurs and investors. Golden Networking has been frequently featured in the press, including recent articles in The Wall Street Journal, "Happy Hour for High-Frequency Trading", The New York Times, "Golden Networking Helps Job Seekers Make Overseas Connections", Los Angeles Times, "Speed-addicted traders dominate today's stock market", Reuters, "Revamp looms as trading experts huddle at SEC" and Columbia Business School's Hermes Alumni Magazine, "10 Under 10".