Is there a tradeoff between execution fees and the execution performance delivered to my customer?
Traders have always strived to attain high quality executions, but measuring execution quality is now more important than ever.
Clearpool hosted its first development team hackathon this month, bringing together our team of technologists for a day dedicated to coding, creativity and complex problem solving. A few days prior to the hackathon, members of our software development and quantitative analysis teams were paired up and the eight teams began brainstorming ideas. The requirements for each team’s “hack” were that it benefit the company in some way and that they take only one day to come up with their proposed solution.
The views of many broker-dealers are often underrepresented in the ongoing debate over market structure reform, but not understanding the impact that trading regulations may have on those broker-dealers can cause many unintended consequences.
In an environment where nearly all trading is done electronically, it’s important to consider the added benefits of human judgement and flexibility that floor brokers may offer.
In our recent comment letter to the SEC, we are in support of NASDAQ’s proposed new order type the Midpoint Extended Life Order, AKA MELO.
Aligning technology and people can be a difficult task. Historically as technology is introduced in an industry it is done so at the expense of collaboration, as it attempts to streamline or make efficient the process it is intended to improve.
Bats recently filed a proposal with the SEC to provide brokers with a market-on-close (MOC) order type that would provide them with the closing price auctions on the NASDAQ and New York Stock Exchange, for stocks listed on those exchanges, but with lower execution fees.
We’ve released our insights on the Tick Size Pilot (TSP). We’ve analyzed our data to assess market structure changes as a result of the pilot, as well as the performance of our algorithmic strategies.
This week an article in the Wall Street Journal, “High-Frequency Traders Fall on Hard Times - Once- lucrative business is now fighting unfavorable market conditions, brutal competition and rising costs”, paints a picture where high frequency trading is no longer the business that it used to be due to less volatility in the market and access to speed for those willing to pay.