Edgar Perez is the author of The Speed Traders: An Insider's Look at the New High-Frequency Trading Phenomenon That is Transforming the Investing World, Published by McGraw-Hill Inc.
Edgar Perez's The Speed Traders, An Insider's Look at the New High-Frequency Trading Phenomenon That is Transforming the Investing World (www.thespeedtraders.com), ranked as the number one must-read book on Modern Finance Report's list of 'Top Ten Must-Read Modern Finance Books of 2011', is the most comprehensive, revealing work available on the most important development in trading in generations. High-frequency trading will no doubt play an ever larger role as computer technology advances and the global exchanges embrace fast electronic access. The Speed Traders explains everything there is to know about how today's high-frequency traders make millions-one cent at a time.
High-frequency trading (HFT) is the most controversial form of investing today, and speed traders have generally flown under the radar. In the name of protecting the algorithms they have spent so much time perfecting, they almost never talk to the press and disclose as little as possible about how they operate-until now.
The Speed Traders reveals how leading HFT players are succeeding in the global markets and driving the development of algorithmic trading at breakneck speeds.
The Speed Traders includes personal interviews with the masters of the HFT universe, who shed light on what HFT is, the essential role it plays in the world's most active exchanges, and how they generate consistent profits at unprecedented rates and volumes. Among the HFT luminaries you'll hear from are:
• Manoj Narang, Founder and CEO of Tradeworx
• Adam Afshar, President of Hyde Park Global Investments
• Aaron Lebovitz, Managing Director at Infinium Capital Management
• John Netto, President of M3 Capital
• Stuart Theakston, Head of High-Frequency Trading at GLC
• Peter van Kleef, CEO of Lakeview Arbitrage
The following is an excerpt from The Speed Traders. Four days after the 'flash crash', this is what Scott Patterson, reporter for the Wall Street Journal, and author of Dark Pools and New York Times best-selling book The Quants, had to say:
"For a crucial set of players-high-frequency trading hedge funds-all this turmoil was becoming too risky to handle. One fear that would prove all too real was that in the extreme swings, some, but not all, trades would later be canceled, leaving [trading firms] on the hook for unwanted positions. Narang, whose Tradeworx, Inc., firm runs a high-frequency trading operation in Red Bank, New Jersey, began to worry that the extreme volatility could lead to painful losses in his fund. At about 2:40, he and a small team of traders scrambled to close the positions held by the high-speed fund, which trades rapidly between stock indexes and the individual stocks in the index. Normally, it takes about a fraction of a second to unwind the trades because of the high-powered computers Mr. Narang uses. But, as the market plunged, it took about two minutes-an eternity in today's computer-driven market."
Mr. Perez is one of the great business networkers and motivators on the lecture circuit; he is available worldwide for the following speaking engagements: Present and Future of High-Frequency Trading, The Real Story behind the "Flash Crash", Networking for Financial Executives, and Business Networking for Success.