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Commentary

John Turney
Traders Magazine Online News

Foreign Exchange Infrastructure: Yesterday, Today and Tomorrow

In this exclusive to Traders Magazine, John Turney, Global Head of Outsourced FX at Northern Trust, discusses the evolution of the fx infrastructure and what is to come.

Traders Poll

What is your favorite movie about trading?

Wall Street

23%

The Big Short

13%

Margin Call

6%

Equity

0%

Trading Places

38%

The Wolf of Wall Street

8%

Boiler Room

7%

Arbitrage

0%

Too Big to Fail

5%

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Has the world really changed?

Everyone says stock trading is different now, but is it? This short, entertaining video, brought to you by Bloomberg Tradebook, shows you how the answers to this and other key questions can make or break a trade...and a trader. Check out the other Bloomberg Tradebook videos below. For more information, visit www.bloombergtradebook.com.

Q&A

Q: You mentioned "runaway algorithms" in the video, what is that and is it a problem?

A: It can be. Algorithmic programs--computerized trading programs that allow orders to be executed faster and more efficiently than in the past--can only do what they are told to do. Algos with improper or incomplete market information programmed in can and have caused havoc in the markets. In the other videos on this site you can see more examples of how much trading we expect to happen in dark pools in a stock and the remaining volume for the day. Information like that helps traders choose the right algorithm for the right situation.

Q: How can someone "tame" data to make it perform for them?

A: Big data can be overwhelming, just getting all the information you need does not mean you can make sense of it, or in other words tame it. Taming data requires getting actionable insight from it. Bloomberg Tradebook, for example, offers a such a function on the Bloomberg Professional® service called Strategy Analyzer or STAZ. This function analyses market data and provides key insights such as estimates of how much trading we expect to happen in dark pools in a stock and the remaining volume for the day. Information like that helps traders choose the right algorithm for the right situation.

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About Insight Bites in 60 Seconds

When it comes to stock trading, so much is changing so quickly that it’s difficult to understand and manage all the variables. Whether it’s algorithmic trading, price swings or dark liquidity, The Insight Bites series presents smart and concise snapshots of what a trader can do to address and overcome the most pressing of these challenges. Hosted by Traders Magazine and brought to you by Bloomberg Tradebook, each 60 second animated video provides quick and humorous insight into a unique issue that traders face every day. For more information, visit www.bloombergtradebook.com.