June 20th 2011
The Speed Traders. Edgar Perez. A guest post from Nora McCallum of Scotia McLeod. 2011. ISBN 978-0071768283
Reg, thanks for passing along “The Speed Traders” by Edgar Perez. I enjoyed reading this book. Most of the research to date demonstrates that HFT’s (and hedge fund managers for that matter) can have a period of very high success but ultimately fail. The extinction ratio for this investors class is very high. I think that the book gives a clear and concise overview of the (short) history and current role that High Frequency Trading plays in the capital markets. Given that speed is of the essence with this tool, I am not sure how much more time can be shaved off the technology; it will be very interesting to see how these trading techniques continue to develop and influence the global capital markets.
- Crapshoot Investing: How Tech-Savvy Traders and Clueless Regulators Turned the Stock Market into a Casino (ritholtz.com)
- The Future and Challenges for High-Speed Trading at High-Frequency Trading Leaders Forum 2011 (your-story.org)
- The future is all about cross-asset arbitrage (ftalphaville.ft.com)
- Hedge Hogs: The Cowboy Traders Behind Wall Street’s Largest Hedge Fund Disaster
- Dark Pools.High speed traders, AI bandits, and the threat to the global financial system. Scott Patterson.
- The Unfair Trade. How our broken financial system destroys the middle class. Michael J . Casey
- The Naked Investor. John Lawrence Reynolds.Why almost everybody but you gets rich on your RRSP
- The Complete Turtle Trader. The legend, the lessons, the results. Michael W. Covel.