Commentary

Tim Quast
Traders Magazine Online News

We're All HFTs Now

In this guest commentary, author Tim Quast looks back at the history of HFT and how the market has evolved to where many firms now fit the definition of high-frequency trader.

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June 30, 2003

Heard at the Show

By Compiled by Peter Chapman

Also in this article

  • Heard at the Show

Here's what some of the industry's top trading and technology pros said at the panel discussion, The Search for End-to-End Electronic Trading Solutions, at this year's SIA's Technology Management Conference and Exhibit:

Standards are very important. In a few areas, operational efficiencies are being stymied because you've got some vendors with vertical integration models and they're not prepared to integrate with other vendors. At 30 Broad Street, we have people who are re-typing. People need to be aware of the important role of open standards and interoperability.'

Roger Burkhardt, Chief Technology Officer of the New York Stock Exchange

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On the floor of the exchange the handheld adoption has really accelerated. It's now approaching one hundred percent.'

Roger Burkhardt, Chief Technology Officer of the New York Stock Exchange

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The biggest improvement in structural change that I've seen in the last year to 18 months has been the integration, on the one hand, of the market data vendor with order routing book and, on the other hand, with the order management system book. The blotter. This is very important to us. The only way our products add value to the trader is if they can see the market information and react to it and it's actionable. It has to be visible and actionable. Liquidity Quote is an example of this. In order for [Liquidity Quote] to have any value the trader needs to see when the Xpress quote becomes Xpress eligible. And they need to be able to act on it. The natural place for that to happen is in the blotter. The blotter shows the stocks the trader is interested in. We've seen [this integration] happen in a number of places. With Macgregor and Lava. And with Eze Castle and REDI Plus. That's a big, big change.'

Roger Burkhardt, Chief Technology Officer of the New York Stock Exchange

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With the logic of reduced IT budgets, but the continued strategic importance of technology we will be seeing a lot more buying than building in the industry.'

Roger Burkhardt, Chief Technology Officer of the New York Stock Exchange

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The only time you want to apply your own proprietary resources are in those areas in which you have a proprietary advantage over your competitors. Where we apply our differentiating resources, as we call it, is in having rocket scientists develop better execution algorithms.'

Matt Andresen, head of global trading at Sanford C. Bernstein & Co.,

on the buy-versus-build question

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The types of technology you need to interact with the over-the-counter market versus what you need to interact with the listed market are almost completely different. To try to get a one-size-fits-all that will serve you well in both OTC and listed is really difficult. It's like training a runner to run a 100-yard sprint and a marathon. You must figure out a way, over the next year, to serve both markets. I think those two markets will start to look a little more like each other because of competition between them. The innovations the New York has introduced in the last few years are steps towards that. The hurdle to overcome in that area are some of the regulatory barriers to competition such as the trade-through rule.'