What they were able to document, however, was the rise of a new major player in Treasury notes: The agencies found that the firms, privately trading their own capital rather than the money of outside investors, accounted for the majority of trading in this crucial market. High-speed algorithmic trading had long been a big concern in stock markets, where sophisticated but obscure firms with lightning-fast connections to exchanges were forcing regulators to grapple with potential problems, including market volatility.
The findings underscored just how hard it could be to keep markets stable and fair as faster, more opaque players show up. The most aggressive algorithmic trading firms have been viewed with suspicion for years because of concerns that their business is essentially predatory, exploiting tiny technical gaps in the market to the disadvantage of other investors.
Though HFT might sound like an inside-baseball issue in the finance world, the debate has bubbled to the point that it has surfaced in the presidential race. Donald Trump's plans are far less specific. But as criticism focuses on the hard-to-monitor world of automated trading, questions remain—what is harmful trading and who is doing it?
The traders themselves defend their work as not only legal, but helpful in keeping markets liquid. And even if we were to decide the trading is harmful, is there any way to get the horse back in the barn? The technology behind this new breed of trader is part of the fundamental fabric of the markets, used by a wide variety of firms and investors. The traders of most concern to regulators are the ones trying to game the complexity of the market itself for competitive advantage.
Their success has been rooted in gaining the fastest conceivable connections to various markets and doing the best job of parsing vast amounts of trade data. The arms race has yielded numerous firms with different strategies, but observers now put them into a couple of separate categories. One type of firm buys and sells various products on a continuous basis, providing liquidity and quickly closing out its positions to limit ist own risk.
Defenders of these "electronic market-makers" argue that they can help provide liquidity in the markets where they operate. One of these, Virtu Financial, last year became the first high-frequency trading firm to go public. Level 2 Futures Quotes. Lightscan screens the entire universe of symbols to display symbols sorted and filtered based on your unique preferences. Sort by over possible Level 1 columns and filter to create infinite possibilities. Block Ticker lets you track big trades.
See what the big boys are trading. Ticker Alert lets you find stocks that are breaking new highs and lows. See where the momentum is. Map any standard or custom order type to a keyboard shortcut. Use your mouse to set up and send your orders. Use our List Order Entry window to simultaneously send orders for multiple symbols. Remain Disciplined and prevent order entry errors using our front and back end risk controls.
Route your orders directly to major market centers, ECNs, and dark pools …. Build your own orders with predefined parameters. React faster to trading opportunities by sending the order type which will increase your chances of a fill.
Once your orders are configured to your liking, they can be sent instantly with the press of a keyboard shortcut. These are just some of the solutions our systems offer day traders. To see everything that our platform has to offer, we encourage you to request a free practice demo account. Our knowledgeable staff can give you a personalized tutorial, and help you configure your layout and order entry options to your specific trading style.
Customizable Options Chains Set up your chains to display the exact info you need to see. You can do much more with the COE: Route your orders directly to a selected options exchange Reverse your strategies with the click of a button to reflect your market sentiment See how much premium you will pay or receive for each complex order before you send it Save your favorite strategies for faster input in future orders Executions Window Use this window to see the margin requirements on open orders and trades in each underlier.
See all trades broken down by individual fill. Use the Strategy view to manually break and hedge eligible positions. Manually hedge your positions and strategies. Select any row to break an already existing hedge.
Pin positions to mark them as hedged or broken Use Auto-hedge to automatically hedge all eligible positions for the best utilization of margin Options Level 2 Quotes Get an in-depth look at options liquidity at every price level. Lightspeed Trader provides you with real-time quote feeds from all the major exchanges. Level 2 allows you to see buyers and sellers in the market and offers insight into potential points of resistance and support.
Integrated time and sales, positions bar, Greeks bar and order ticket If your strategy involves scalping options, this feature is a must. Options Time and Sales Keep track of where options are actually trading, not just where they are being quoted. Link your time and sales window to your options quotes Customize and sort your columns based on your preferences Customizable Layouts Lightspeed Trader allows you to configure up to 10 personalized screen layouts.