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Robert Schuessler
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A Smarter Monkey

In this contributed piece, TIM noted that some traders do better than others when using data that has been run through certain analysis - that is, have used some form of machine learning to assist them.

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In his first public speech, SEC Chair Jay Clayton deviated from his prepared remarks and offered his own "off the cuff" comments on market issues. Do you like this change of pace?




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December 2, 2013

Canada Focuses on HFT

By By Peter Chapman

The Investment Industry Regulatory Organization of Canada is gathering and analyzing data to determine the impact of high-frequency trading on the Canadian stock market. The goal is to compile a body of data solely attributable to HFT and then release it to academics for further study, accpording to Deanna Dobrowsky, a vice president in IIROC's market regulation policy department.

"We will take a look at HFT trading to see how it impacts market quality," Dobrowsky said at a recent conference in New York sponsored by Baruch College. "Right now, we are trying to refine the data to produce an HFT group." Guiding the regulator's research are industry order-to-trade ratios. HFT is associated with high order-to-trade ratios, as firms tend to generate a huge amount of quotes, or orders, but a relatively small number of trades. Canada's regulators are concerned that excessively high ratios could harm market quality.

 

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