How Market Connectivity Issue Damages Capital Markets

wm MarketConenctivity - Infographic

3rd July 2014

BSE had to shut down, and trading got halted for three hours, leaving traders specifically arbitragers and intra-day trader’s panic, fearing their positions are at risk.

17th April 2015

Bloomberg systems going down at around 0720 GMT and the screens were blank for most of the following two hours; market participants said, adding that prices were unavailable and the news feed intermittent.

08 July 2015,

 NYSE had to shut down due to technical configuration problem for almost three hours.

The incidents mentioned above highlight an important fact about “market connectivity in a time pressured trading environment” that in an ideal world is suppose to be flawless and always GREEN. But is it the case? Interruptions’ and glitches in connectivity are blowing client relationships and trading desk revenues across the US, Europe, and Asia. Could improved focus on employing faster and much more dependable connectivity enhance overall infrastructure and facilitate financial institutions to be competitive enough? Let’s take a sneak peek-

The Problem Statement

The new race of offering reduced latency has been “talk of the town” in the financial industry. Where a delay of millisecond could snap away the deal, think about a situation when you completely lost the connectivity. Continue reading

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Difference between High Frequency Trading, Algorithmic Trading and Automated Trading

It’s been more than four months that I resigned from my previous organization [one of the expertise in Trade automation], but still whenever I speak about algo trading I often get questions like – isn’t it same as High Frequency Trading.

So, I just thought of putting a post and here it is –

What is Algorithmic Trading?

As mentioned in my previous article – Algorithmic Trading [AlT] from a Laymen Perspective, AlT is slicing of the order to achieve a good price for a specific period of time and moderate the aggressiveness in the market. Continue reading

The Understanding of Algorithmic Trading From a Laymen Perspective

In an urban world when performing a simple calculation at the grocery store of $13.67 + $23.78, we rely on the billing machine.It’s hard to expect a fund manager or a buy-side trader to put a formula and come up with a statistics of profitable trade. We rely on them, and they rely on of complex algorithms stressing a cost conscious and hyper-competitive trading environment. Algorithms are now the part and parcel of any trading platform, and brokers extensively use them to poach new clients and retain their loyal customers.

What is Algorithmic Trading?

Trades captured with the use of algorithm are known as Algorithmic Trading. In more technical words – Continue reading

Do All Buy Side firms need both OMS and EMS?

Markets are now flooded with OMS and EMS offering making it tough for the buy side firms to pick the best one. Let’s have a quick glance on what are the factors which any buy side firm should consider before finalizing the product

What is OMS and EMS?
OMS which existed from 1980’s was one of the pet of all buy side firms, but later with evolution of technology and need to connect to multiple vendors , Continue reading