From Nasdaq's First Electronic Network to Dark Pools, High-Frequency Trading History and Development

July 24, 2011 - PRLog -- High-Frequency Trading Experts Workshop, "Practical Implementation of High-Frequency Trading Strategies", the insightful high-frequency trading 2-day workshop organized by Golden Networking, is now available on DVD, at http://www.HFTExpertsWorkshop.com, featuring a session on High-Frequency Trading History and Recent Developments.

As reported by Forbes.com, the Securities and Exchange Commission (SEC) has thus far concentrated on proposals to ban flash trading--which allows some market participants, such as hedge funds and large banks, to see certain orders in advance of other market participants--and to increase transparency concerning alternative trading platforms known as "dark pools". The U.S. system relies on broker-dealer regulation to ensure certain standards are met; nonetheless, the evolution of high-frequency trading--where milliseconds or even microseconds are crucial to securing competitive advantages--has largely bypassed the ability of these firms to apply meaningful controls. "Naked" or "unfiltered" sponsored access trading has emerged, whereby broker-dealers allow high-frequency traders to access trading platforms directly, using a broker-dealers' access codes, without first being subject to that broker-dealers' risk management system.

The final regulations may be modified, as the SEC has opened a period for public comments. However, if finally adopted, these changes would erode the ability of high-frequency trading firms to execute trades profitably--unless a broker-dealer itself conducts the high-speed trade. Since speed is key to making high-frequency trading profitable, the SEC's proposals may force firms that specialize in it to shift their operations to unregulated markets. Moving such trades abroad might not reduce overall systemic risk, as regulators in other countries have not kept pace with the SEC in tackling the risks associated with such transactions. A decline in high-frequency trading in the United States might reduce liquidity, but it is not clear whether this will affect the execution of the trades of ordinary institutional and retail customers.

High-Frequency Trading Experts Workshop DVD Video Package is produced by Golden Networking (http://www.goldennetworking.net), the premier networking community for business executives, entrepreneurs and investors. Golden Networking has compiled the insights of top experts and industry practitioners and produced DVD Video Packages for its Leaders and Experts Forums, including:

•   2nd China Leaders Forum DVD Video Package, "Is the Chinese Dragon Poised for Global Dominance or Economic Implosion?", http://www.ChinaLeadersForum.com
•   Distressed Investing Experts Forum 2010 DVD Video Package, "Analyzing and Valuing Distressed Companies, Securities and Real Estate", http://www.DistressedInvestingExpertsForum.com
•   Derivatives Leaders Forum 2010 DVD Video Package, "Strategies for Increasing Profits under an Evolving Regulatory Framework", http://www.DerivativesLeadersForum.com
•   High-Frequency Trading Leaders Forum 2010 DVD Video Package, "Innovating and Profiting from High-Frequency Trading in 2010 and Beyond", http://www.HFTLeadersForum.com
•   Hedge Funds Leaders Forum 2010 DVD Video Package, "Generating Alpha in Challenging Times", http://www.HedgeFundsLeadersForum.com
•   High-Frequency Trading Experts Forum 2010 DVD Video Package, "Starting and Running a High-Frequency Trading Operation", http://www.HFTExpertsForum.com
•   Distressed Investing Leaders Forum 2010 DVD Video Package, "Extraordinary Opportunities Investors Cannot Afford to Pass", http://www.DistressedInvestingLeadersForum.com
•   China Leaders Forum 2009 DVD Video Package, "Addressing the Challenges Posed by the Present Wave of Chinese Globalization", http://www.ChinaLeadersForum.com
•   Distressed Investing Leaders Forum 2009 DVD Video Package, "The Most Comprehensive Guide for Any Investor in Distressed Assets", http://www.DistressedInvestingLeadersForum.com

Panelists, speakers and sponsors are invited to contact Golden Networking by sending an email to info@goldennetworking.net. Golden Networking has been frequently featured in the press, including recent articles in The Wall Street Journal, "Happy Hour for High-Frequency Trading", The New York Times, "Golden Networking Helps Job Seekers Make Overseas Connections", Los Angeles Times, "Speed-addicted traders dominate today's stock market", Reuters, "Revamp looms as trading experts huddle at SEC" and Columbia Business School's Hermes Alumni Magazine, "10 Under 10".

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