Trading Systems

Tyler Durden's picture

What DOJ Probe: Citadel Acquires Electronic Trading Pioneer ATD To Cement HFT Dominance





Less than a week after Reuters broke the story that the Department of Justice is probing HFT powerhouse Citadel, which admits it executes 35% of all trades by retail investors in U.S.-listed stocks, whether it is also frontrunning those orders (an allegation that many are convinced is a rock-solid fact) we find that billionaire Ken Griffin is not at all concerned about the outcome of the investigation on his core business model and is instead expanding. Citadel is acquiring the equity-trading operations of Citigroup’s Automated Trading Desk division, one of the pioneers of high-frequency trading.

 
Tyler Durden's picture

DOJ Probing Whether Citadel Is Frontrunning Its Clients





We were not surprised, though certainly delighted, to see that after years of railing against Citadel's dominant position at the intersection of HFT trading and retail orderflow - recently Citadel was found to be the largest private US trading venue - this morning Reuters reports that Federal authorities are investigating the market-making arms of Citadel LLC and KCG Holdings looking into the possibility that the two giants of electronic trading are giving small investors a poor deal when executing stock transactions on their behalf. In other words, the DOJ is looking into whether Citadel is frontrunning its clients, something we have claimed for years.

 
Tyler Durden's picture

Which Are The Highest Paying Trading Jobs





As many traders are terrified that the next round of layoffs will cost them their job, it's not all doom and gloom especially when one recalls that, on average, most traders are paid far better than 99% of all other jobs. And some are certainly more equal than others. Below we present a breakdown of the highest paying trading jobs, based on an analysis from Emolument, which has examined London traders' salary and bonus data at Director level to provide a glimpse into their remuneration profiles

 
Tyler Durden's picture

The Bubble Deflates – And Crash Risk Rises





We already suspected in mid 2013 (worrying about the market far too early as it has turned out in hindsight) that there were parallels to what happened in the late 1990s bull market, specifically near its end in the year 2000. However, in the meantime, even more such parallels have become noticeable.

 
Tyler Durden's picture

So You Want To Be A Citadel Trader: Here Are The Requirements





  • Advanced training in Computer Science, Computer Engineering, or other related fields
  • Extensive programming experience with strong object oriented design skills and fluency in C, C++, or Java
  • Expertise with algorithms and data structures
  • Demonstrated ability to communicate complex ideas in a clear, concise fashion
  • Ability to thrive in a complex, fast-paced, and highly technical environment
 
Tyler Durden's picture

High-Frequency Traders Face Crackdown As CFTC Proposes Tougher Regulations - Live Feed





CFTC meets this morning to propose a registration standard applying to as many as 100 firms that have changed markets by trading their own money using complex algorithms and advanced technology. As Bloomberg notes, this proposal follows more than 5 yrs of debate about market disruptions, such as the May 2010 flash crash. Crucially, as is well known now, high-speed, automated trading in recent years has surged to account for almost three-quarters of certain derivatives markets which means any regulatory crackdowns will no doubt have impacts on markets; as former CFTC chief Chilton noted “Clearly some of the rules are antiquated.”

 
Tyler Durden's picture

"If You Get Enquiries Just Obfuscate And Stonewall" - How Barclays Rigged The FX Market For Seven Years





Do not involve Sales in anyway [sic] whatsoever.  In fact avoid mentioning the existence of the whole BATS Last Look functionality.  If you get enquiries just obfuscate and stonewall.... for the future, sales absolutely 100% do not know about the existence of last look and it shouldn’t be a concern for them...  IF any client does call up about a rejected trade . . . it is important that you state in any communication ‘THE TRADE WAS REJECTED BECAUSE OF LATENCY.’ . . . DO NOT talk about P&L on trades."

 
Tyler Durden's picture

Guest Post: Gold, Oil, & 'Grandmaster' Putin's Trap





It is important to keep in mind that the dollar’s attacks on gold always end the same way – in a painful knockout for the dollar. There have been no exceptions to this rule throughout monetary history, nor will there be this time. Hence the well-known market rule: “Any maximum of the gold price is not the last one.” It would be naive to believe that this golden rule is unknown to that grandmaster of patience, Vladimir Putin, and to Xi Jinping. By systematically increasing their gold reserves, Russia and China are relentlessly moving forward to strip the US dollar of its status as a global reserve currency. America’s standard military solution won’t work in this situation.

 
Sprott Money's picture

China Proposes Phasing-Out Manipulative Trading Algorithms





Over the past decade; our markets have ceased to behave like “markets”, at all. 

 
Tyler Durden's picture

Chinese Regulator Proposes Ban On High-Frequency Trading





It appears Chinese authorities want to be the monopoly manipulator of their stock markets. Just a week after BlackRock suggested (and Hillary spewed) plans for transaction taxes in US markets to effectively kill high-frequency-trading (and all its ills), China's Securities Regulator Commission (CSRC) has proposed limiting the use of automated trading programs in the stock market. Of course, just as we saw last nght in China futures, we assume CSRC only wants to ban "selling" algos and not "spoofers" pushing stocks higher.

 
Tyler Durden's picture

Why Apple’s Launch Event Was "Creepy As Hell"





The Apple Launch is a closed circle of fawning sycophants, thrilled with gimmicks, adapted to computers, programmed, a throng of identical authentic individuals chained to their machines and congratulating themselves on being ‘connected,’ led by a human that resembles a robot. Two hours of watching the Apple Launch actually made the Manson Family seem homey.

 
Tyler Durden's picture

Cutting Through The HFT Lies: What Really Happened During The Flash Crash Of August 24, 2015





One of the fallacies being propagated about yesterday's flash crash, is that somehow HFTs came riding in as noble white knights and rescued the market from a collapse instead of actually causing it. This particular lie is worth a few quick observations and explanations of what really happened.

 
Tyler Durden's picture

One Trader's FOMC Take - "A Rate Hike Is Coming And It Is Not Priced In"





A rate hike is coming. It is coming because the economy is not in crisis and zero rates are crisis rates, Bloomberg’s Richard Breslow writes. It is coming because the benefits of starting down the path to monetary policy normality are vitally important to the future health of the economy and restoring the Fed’s reaction function. The world can share the benefits and the costs. But one thing we do know, is that with all the hinting and polling and talk of trajectory, it is not priced in.

 
Tyler Durden's picture

6 Years And One Witch Hunt Later, Goldman Changes Its Mind On "Secret Sauce" Software





Despite the firm's rather checkered history when it comes to open source software, Goldman is reportedly set to make some of its technology available to clients. This new, enlightened stance comes six years after the bank accused a former employee of stealing code that, if it fell into the "wrong" hands, had the potential to "manipulate markets in unfair ways."

 
Tyler Durden's picture

The $12 Trillion Fat Finger: How A "Glitch" Nearly Crashed The Global Financial System - A True Story





... in under a minute, the hateful script had taken offline the entire system in much the same manner as chucking a spanner into a running engine might stop a car. The databases, as always, were flushing their precious data onto many different disks as this happened, so massive, irreversible data corruption occurred. That was it, the biggest computer system in the bank, maybe even the world, was down. And it wasn't coming back up again quickly. At the time this failure occurred there was more than $12 TRILLION of trades at various stages of the settlement process in the system. This represented around 20% of ALL trades on the global stock market.

 
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