Trading Systems

"Panicked" Citi Trader "Who Fired Off Repeated Sell Orders" Behind Pound Flash Crash

A probe into October’s sterling "flash crash" has focused on the Japanese trading operations of Citigroup, which fired off repeated sell orders that exacerbated the pound’s fall. One of the US bank’s traders "panicked" and placed multiple sell orders when the currency slumped in unusually fragile market conditions.

Trading For A Living

"...you have a choice to make. If you treat trading as a hobby... remember hobbies cost money... If you want to make money in the market then you need to make the commitment to trade with a professional mindset...the hobbiest has doesn't have much of a chance to make money."

Do You Believe In QE Miracles?

"This is a very artificial market," warns Allianz' Mohammed El-Erian, and while markets are expecting an ever increasing pace of central bank buying of assets, their policies are no longer working...

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.

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.

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

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.

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

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.”

"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."