High Frequency Trading On Chinese Market

As the leading financial market in the world, the Foreign Exchange Market consists of several types of financial institutions, such as, investors, such as, central banks, brokers, and investment firms. The Foreign Exchange Market does not have an actual physical location; it is a worldwide system of computers. Currency traders are linked together from all over the world by these computers. Once currency traders enter the network, the computers allow them to exchange currencies by purchasing, selling, or speculating ("Foreign Exchange Markets - Forex - Investopedia Definition | Investopedia," n.d.). In the Foreign Exchange Market, also called Forex Market, trillions of transactions are completed everyday. Within this market are the spot market and forward market. Spot transactions take place in the spot market. A spot transaction occurs when one currency is traded for another currency. These types of transactions are immediate, however it takes two business days for the bank to process this transaction due to different time zones (Standard Bank, n.d.). Forward transactions occur in the forward market and are often called foreign exchange contracts. Unlike spot transactions, forward market transactions are set to occur on a specified future date. The agreement and exchange rate of the transaction is already determined, however, it will be traded at a future date, which is noted in the contract (Standard Bank, n.d.). Many historical

Insider dealing has been affecting the efficiency of stock markets in different places like United States, United Kingdom and Australia. Hong Kong is of no exception. Basically, insider dealing refers to the trading of a corporation’s stock or other securities by individual with potential access to non-public information of the company. The law of insider dealing in Hong Kong provides a much more detailed definition and is very comprehensive. However, when it comes to enforcement, it seems not very effective. In the following, the law of insider dealing in Hong Kong will be summarized. After analyzing the comprehensiveness of the law, the underlying reasons of the difficulty in enforcement will be identified. Some

High Frequency Trading (HFT) consists of the predictive buying and selling of contracts using algorithmic trading software and ultra low latency trading infrastructure where fractional increments of money can be earned in sometimes microseconds (millionth of a second). The trading technique as such as been used in various forms as markets evolved and equity trading matured.

Stock Exchange was formed trading equities auctions style. The market was in good health and around 1930 the traditional way stocks was to research them using fundamental-analysis, which analyzed a company’s health by examining their historical metrics. This changed in 1951, Harry Markowitz applied mathematical concepts to the market, which helped create algorithms that could calculate several different stocks simultaneously. By the early 1970s the markets started moving away from the traditional auctions to Electronic Communication Networks *. Algorithm trading presents series of problems, a few for each side of the playing field, so individuals are not safe playing with them or against them.

There is a method of stock trading known as Algorithmic Trading. As the name implies, algorithms are used to make buy and sell orders in the stock market. A subset of Algorithmic Trading, known as High Frequency Trading (HFT), was blamed by the media for the Flash Crash.

Institutions often trade of shares and institutional order’s can have a major impact on market volatility. In smaller markets, institutional trades can potentially destabilize the markets. Moreover, institutions also have to design and time their trading strategies carefully so that their trades have maximum possible

Please complete an advanced written paper on Bitcoin. The length, subject, and stance you take on this is completely your prerogative.

The purpose of this paper is to outline the relationship between Chinese and American financial markets. The paper will outline the levels of debt for chines, the major drivers of that debt, and the future consequences of debt levels. The paper will also describe the the structure of Chinese banking system; it will not describe the U.S structure simply because we had a whole semester discussing that material. I believe this research is essential because of the sheer interconnectedness of the global banking system; and the rise of China specifically has implications that should not go misunderstood.

According to statistics from Bank of Japan, HFT account for more than 50 percent in Tokyo Stock Exchange (TSE) in September 2012, which is the second largest sock exchange in Asia. Rather than attempting to restrict HFT in the market, Japan has made upgrades to its trading system “Arrowhead” to embrace HFT. “Arrowhead” brings millisecond-level speeds to both transactions and market-information distribution, achieves an order execution time of 5 milliseconds and distributes information in 3 milliseconds5. It also distributes all order information on all issues in real time. High frequency traders could get benefit from this real-time access to all order and quote data. In addition, Japan stock market is the

One of the newest stock exchanges is the NASDAQ, which stands for the National Association of Securities Dealers Automated Quotations. It was the world’s first electronic stock when it was founded in 1971. Now it has trading, clearing, exchange technology, listing, information and public company services from six continents. The Nasdaq has over 3,600 listed companies, a value of approximately $9.6 Trillion and more than 10,000 corporate clients. The technology that is behind the NASDAQ is now used in over 50 countries. It is so widespread that one out of every ten transactions happens in NASDAQ’s security transaction program.

In 1996, the Indian parliament passed the Derivatives act, which allowed online transaction of shares, thus making it much easier for all stakeholders to perform their task. Online trading, in simple terms, can be understood as buying and selling securities through the internet. Such trading commonly necessitates an online trading platform offered for order initiation and completion. This trading platform provides the investor with all the trading information necessary to make informed investment decision at any point of time. Securities trading can be done with a click of a few buttons and the investor has access to live market watch functionalities and intraday research dashboard with quick login.

As we known, high frequency trading (HFT) means using powerful computer to transact a large number of orders at a very fast speed. Normally, traders with faster speeds are more profitable than those with slower speeds. Nowadays, about 70% of trading in U.S. is HFT and usually people think HFT is beneficial for the markets. However, in Michael Lewis’s book, Flash Boys, HFT is described as a contributor to the rigged markets. Mr. Lewis told us a story about Mr. Katsuyama in this book. Mr. Katsuyama was the head of equity trading of the Royal Bank of Canada and he found some HFT companies used the time difference among the time when normal traders received the transaction data to make money. These companies could buy the stocks at lower

Also called the “Big Board”, it is the largest stock exchange in the world in terms of dollar volume and second largest in terms of number of companies listed. The Tokyo stock exchange was established on May 15, 1878 and trading began on June 1, 1878. In 1943, the exchange was combined with ten other stock exchanges in major Japanese cities to form a single Japanese Stock Exchange. It is the second largest stock exchange market in terms of monetary volume and currently has 2302 listed companies. The Hong Kong stock exchange is the 8th largest stock exchange in the world in terms of Market capitalization. The Hang Sang Index (HIS), was started on November 24, 1969. The Russian stock exchange was established in 1995 by consolidating the separate regional stock exchanges into one uniformly regulated trading floor. The Korea stock exchange was created by the integration of the three existing of the Korean Spots and Futures exchanges (Korean stock exchange, Korean futures exchange & KOSDAQ) under the Korea Stock and Futures Exchange Act.3.5. In this paper, the names of the countries and the names of the indices of those countries have been used interchangeably. Thus, the names of the countries represent the indices for the

As ubiquitous as eBay is to Americans, it is only a few decades old. eBay was created back in 1995 in San Jose in the living room of founder Pierre Omidyar with his partner Jeff Skoll and it was envisioned to be a marketplace for the sale of goods and services for individuals (Bjornsson, 2001). Meg Whitman was eventually brought onboard to sustain the success and to help hone a better vision for the company: "that eBay is a company that's in the business of connecting people, not selling them things" (Bjornsson, 2001). Part of the widespread success of eBay was founded in the principle that it was not just about auctioning off collectibles, but in upscale markets as well and in creating solid partnerships with brands like GM, Disney and Sun (bradeis.edu). In spite of those tremendous accomplishments, the real success of eBay is in its trading community on the Internet and making it a marketplace that is safe and regulated. "Buyers and sellers are brought together in a manner where sellers are permitted to list items for sale, buyers to bid on items of interest and all eBay users to browse through listed items in a fully automated way. The items are arranged by topics, where each type of auction has its own category" (Bjornsson, 2001). However, despite the massive success that eBay has had in America and in other regions of North America, it has struggled in other marketplaces around the world; something which was indeed a surprise

In today’s technology driven society, information systems are changing the financial markets. Modern day electronic trading has given direct market access to retail traders and investors. Stock trading used to require face to face trading or calling your broker over the phone. The market was illiquid in lots of areas such as options, short selling, and smaller cap stocks. The transaction costs were also costly. Improvements to electronic trading brought the market faster order executions, liquidity due to the increase in trades and frequency of trades, reduction of transaction costs, more competition, smaller bid-ask spreads, and easier accessibility. Advancements in information systems leveled the playing field whereas most trader and investors can now received data and news at the approximately the same time. It also made possible for the average retail trader or investor to trade from home or even on the go on a mobile device. There are many electronic information systems that have improved electronic trading and have opened the stock market to new possibilities. This research paper will examine some of the information systems that have given us the modern day electronic trading in financial markets and the highly debated high frequency trading (HFT).