Month: November 2011

CMC Markets Hit with Technology Cost

CMC Markets, the financial trading firm founded by the UK Conservative Party co-treasurer Peter Cruddas, has nearly doubled its pre-tax loss as it wrote off technology investment costs for the year to March 2011. CMC, which provides spread betting and contracts for difference trading to retail customers, made a pre-tax loss of £23.7 million in […]

Financial Transaction Tax Attracts More Criticism

Eleven financial industry associations in Europe joined forces at the end of October to urge UK chancellor George Osborne to reject any attempt to impose a European Union financial transaction tax. Signatories to a letter sent to the chancellor include the British Bankers’ Association, the Association for Financial Markets in Europe, the International Swaps and […]

Overcoming Latency and Capacity Issues

It is a truth universally acknowledged that the proliferation of high frequency trading activity has resulted in a dramatic rise in volume in the financial markets. Data from the Bank for International Settlements (BIS) shows that most of the recent foreign exchange market growth – about 20% in volume terms between 2007 and 2010 – […]

Technology Choices for HFT Firms

High frequency trading volumes in the foreign exchange market have grown consistently over the past few years, primarily due to the electronification of the market and technological advances, which have driven down transaction costs. Electronic trading now accounts for 50% of FX volume, according to research and advisory company Celent. In a new report, Celent […]

10 Questions to Tackle on HFT

1: Will HFT operating in emerging markets be a good thing for the industry and those markets?2: Is “Hot Potato” trading now the dominant theme in FX markets?3: Is retail FX an issue of greater concern than HFT?4: Should the BIS study group formally gather data on when “real economy” flows typically hit the FX […]

HFT: Just One of the Gang

In the June issue of Profit & Loss, we asked the question: Is high frequency trading still a pariah? The question was pertinent, coming as it did, one year after the Flash Crash in US equity markets, but chose to focus more on the FX markets. For some time now the debate over the impact […]

Special Report: Interdealer Broker Concerns

The Second Annual Swap Execution Facility Conference (SEFCONII), held in New York in early October by the Wholesale Markets Brokers’ Association, Americas (WMBAA), drew a crowd of 400 and a long list of politicians, market practitioners and regulators. Conference chairman Chris Giancarlo, a founding board member of the WMBAA, set the tone for the day, […]

Special Report: Derivatives Rules

Meanwhile, at an address to the Futures Industry Association a week later in Chicago, Chairman Gensler spoke to an audience of several thousand dealers about the CFTC’s rule writing process with regards to derivatives, again showing a singular focus on regulatory oversight. “Each part of our nation’s economy relies on a well-functioning derivatives marketplace. The […]

Special Report: SEF Rules

Commodity Futures Trading Commission Chairman Gary Gensler has been making appearances at various industry conferences around the US, addressing a wide range of market participants. While audiences are hopeful he can be persuaded to truly understand their concerns, many are walking away feeling that he just isn’t listening… The following is an excerpt from a […]

The Last Word…

How socially conscious should traders be? To be honest it’s not a question I thought I would ever have to answer, but then, equally, it’s nothing new. I sat through countless dinner parties in the 1980s and 1990s during which my profession (financial markets trading) was slammed repeatedly as seeking to destroy the world. I […]