Big Data in Stock Exchange
DMYTRO MELNYCHUK
New York Stock Exchange: To be listed on the NYSE, a company must have issued at least a million shares of stock worth $100 million and must have earned more than $10 million over the last three years
Who is stockbroker?
A stockbroker is a regulated professional individual, usually associated with a brokerage firm or broker-dealer, who buys and sells stocks and other securities for both retail and institutional clients
New York Stock ExchangeOLD NYSE(1920) NEW
NYSE(2016)
High-frequency tradingis a type of algorithmic trading characterized by high speeds, high turnover rates, and high order-to-trade ratios that leverages high-frequency financial data and electronic trading tools
High-frequency tradingis trading that leverages high-frequency financial data and electronic trading tools
• High-frequency trading firms represented 2% of 20,000 firms in market, but 73% money of all operation at 2016 press on HFT companies
People trad-ing
26%
HFT74%
Peace of many by method of trade in
2009
People trading HFT
According to a study in 2010 by Aite Group, about a quarter of major global futures volume came from professional high-frequency traders
People trading24%
HFT76%
Major global futures volume in 2010
People trading HFT
HFT Brokers Dom Maklerski S.A. is an independent brokerage house, that specialize in trading CFD based on Forex, stock indices, commodities and equity market. HFT Brokers – created by Traders for Traders(New York, USA)Founded: 2006Type: Public CompanyIndustry: Capital MarketsCompany Size: 51-200 employeesHeadquarters: Warsaw, PolandSpecialties Forex, Trading, High Speed
Trading, High Frequency
Trading, Education
Website: http://www.hftbrokers.pl
High-frequency trading in Poland
Main office in the picture >>
HFT Brokers Dom Maklerski S.A.
Headquarters : Str. Prosta 51, 00-838 Warsaw
Nanex is one of the best firm that offers streaming data on all market transactions and distributes the data in real-time to clients (typically, traders and financial analysis firms) and allows them to do analysis and visualization in real-time
How does the HFT during 7 secondsat Nanex platform
http://youtube.com/watch?v=a-9A0ar70pI
https://www.youtube.com/watch?v=6f486Qg4Fis
High-frequency Trading Model
Procent of orders generated by algorithms
*Ultra-low latency direct market access (DMA)
High Touch trading so hard today
HFT is the reason of flash crashes A flash crash is a very rapid, deep, and volatile fall in security prices occurring within an extremely short time period.
A flash crash frequently stems from trades executed by black-box trading, combined with high-frequency trading, whose speed and interconnectedness can result in the loss and recovery of billions of dollars in a matter of minutes and seconds.
Two notable flash crashes have occurred in history: April 23, 2013, Flash CrashSingapore Exchange which lost $6.9 billion in capitalization and saw some stocks lose up to 87 percent of their value
May 6, 2010, Flash Crash$4.1 billion trade on the NYSE resulted in a loss to the Dow Jones Industrial Average of over 1000 points
Market need to control HFT via algorithmic tests
When the market operates normally (left subplot), almost all of the HFT agents are in control of their inventory (greenish color). In crash period (right), most of the HFT agents gain large inventories (red) and the network is highly interconnected: over 85 percent of the transactions are HFT-HFT.
Despite the problems, but high-frequency trading is our future
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