Electronic and Algorithmic Trading Technology : The Complete Guide.
Title:
Electronic and Algorithmic Trading Technology : The Complete Guide.
Author:
Kim, Kendall.
ISBN:
9780080548869
Personal Author:
Physical Description:
1 online resource (224 pages)
Series:
Complete Technology Guides for Financial Services
Contents:
Front Cover -- Electronic and Algorithmic Trading Technology -- Copyright Page -- Contents -- About the Author -- Series Preface -- Introduction -- Chapter 1: Overview of Electronic and Algorithmic Trading -- 1.1. Overview -- 1.2. The Emergence of Electronic Trading Networks -- 1.3. The Participants -- 1.4. The Impact of Decimalization -- 1.5. The Different Faces of Electronic Trading -- 1.6. Program Trading and the Stock Market Crash of 1987 -- 1.7. Conclusion -- Chapter 2: Automating Trade and Order Flow -- 2.1. Introduction -- 2.2. Internal Controls -- 2.3. Trade Cycle -- 2.4. Straight-Through Processing and Trade Automation -- 2.5. Data Management -- 2.6. Order Management Systems -- 2.7. Order Routing -- 2.8. Liquidity Shift -- 2.9. Conclusion -- Chapter 3: The Growth of Program and Algorithmic Trading -- 3.1. Introduction -- 3.2. A Sample Program Trade -- 3.3. The Downside of Program Trading -- 3.4. Market Growth and IT Spending -- 3.5. Conclusion -- Chapter 4: Alternative Execution Venues -- 4.1. Introduction -- 4.2. Structure of Exchanges -- 4.3. Rule 390 -- 4.4. Exchanges Scramble to Consolidate -- 4.5. Arguments Against Exchanges -- 4.6. The Exchanges in the News -- 4.7. Conclusion -- Chapter 5: Algorithmic Strategies -- 5.1. Introduction -- 5.2. Algorithmic Penetration -- 5.3. Implementation Shortfall Measurement -- 5.4. Volume-Weighted Average Price -- 5.5. VWAP Definitions -- 5.6. Time-Weighted Average Price -- 5.7. Conclusion -- Chapter 6: Algorithmic Feasibility and Limitations -- 6.1. Introduction -- 6.2. Trade Structure -- 6.3. Algorithmic Feasibility -- 6.4. Algorithmic Trading Checklist -- 6.5. High Opportunity Costs -- 6.6. Newsflow Algorithms -- 6.7. Black Box Trading for Fixed-Income Instruments -- 6.8. Conclusion -- Chapter 7: Electronic Trading Networks -- 7.1. Introduction -- 7.2. Direct Market Access.
7.3. Electronic Communication Networks -- 7.4. Shifting Trends -- 7.5. Conclusion -- Chapter 8: Effective Data Management -- 8.1. Introduction -- 8.2. Real-Time Data -- 8.3. Strategy Enablers -- 8.4. Order Routing -- 8.5. Impact on Operations and Technology -- 8.6. Conclusion -- Chapter 9: Minimizing Execution Costs -- 9.1. Introduction -- 9.2. Components of Trading Costs -- 9.3. Price Impacts with Liquidity -- 9.4. Cost of Waiting -- 9.5. Explicit Costs-Commissions, Fees, and Taxes -- 9.6. Conclusion -- Chapter 10: Transaction Cost Research -- 10.1. Introduction -- 10.2. Post-Trade TCR -- 10.3. Pre-Trade TCR -- 10.4. The Future of Transaction Cost Research -- 10.5. Conclusion -- Chapter 11: Electronic and Algorithmic Trading for Different Asset Classes -- 11.1. Introduction -- 11.2. Development of Electronic Trading -- 11.3. Electronic Trading Platforms -- 11.4. Types of Systems -- 11.5. TRACE-Reform in Transparency -- 11.6. Foreign Exchange Markets -- 11.7. The FX Market Ecosystem -- 11.8. Conclusion -- Chapter 12: Regulation NMS and Other Regulatory Reporting -- 12.1. Introduction -- 12.2. Regulatory Challenges -- 12.3. The National Market System -- 12.4. The Impact of Regulatory NMS -- 12.5. Markets in Financial Instruments Directive in Europe -- 12.6. Regulatory and Exchange Reporting -- 12.7. Example of an Exchange Data Processing System -- 12.8. Conclusion -- Chapter 13: Build vs. Buy -- 13.1. Introduction -- 13.2. Vendor as a Service Provider -- 13.3. Striving to Stand Out -- 13.4. The Surge of Electronic Trading Through Regulatory Changes -- 13.5. Hedge Fund Systems-Outsource or In-House? -- 13.6. Conclusion -- Chapter 14: Trading Technology and Prime Brokerage -- 14.1. Introduction -- 14.2. Prime Broker Services -- 14.3. The Structure of Hedge Funds -- 14.4. The Impact of Increased Trading Automation.
14.5. Different Markets and Asset Classes -- 14.6. The Prime Brokerage Market -- 14.7. Conclusion -- Chapter 15: Profiling the Leading Vendors -- 15.1. Introduction -- 15.2. Profiling Leading Vendors -- 15.3. Order Management Systems -- Appendix: The Implementation of Trading Systems -- A.1. Overview -- A.2. Project Phases -- A.2. User Acceptance Testing -- A.3. From Implementation to Customization -- A.4. The Challenges of Data Integration -- A.5. Supporting Financial Products -- Glossary of Terms -- Index.
Abstract:
Electronic and algorithmic trading has become part of a mainstream response to buy-side traders' need to move large blocks of shares with minimum market impact in today's complex institutional trading environment. This book illustrates an overview of key providers in the marketplace. With electronic trading platforms becoming increasingly sophisticated, more cost effective measures handling larger order flow is becoming a reality. The higher reliance on electronic trading has had profound implications for vendors and users of information and trading products. Broker dealers providing solutions through their products are facing changes in their business models such as: relationships with sellside customers, relationships with buyside customers, the importance of broker neutrality, the role of direct market access, and the relationship with prime brokers. Electronic and Algorithmic Trading Technology: The Complete Guide is the ultimate guide to managers, institutional investors, broker dealers, and software vendors to better understand innovative technologies that can cut transaction costs, eliminate human error, boost trading efficiency and supplement productivity. As economic and regulatory pressures are driving financial institutions to seek efficiency gains by improving the quality of software systems, firms are devoting increasing amounts of financial and human capital to maintaining their competitive edge. This book is written to aid the management and development of IT systems for financial institutions. Although the book focuses on the securities industry, its solution framework can be applied to satisfy complex automation requirements within very different sectors of financial services - from payments and cash management, to insurance and securities. Electronic and Algorithmic Trading: The Complete Guide is geared toward all levels of
technology, investment management and the financial service professionals responsible for developing and implementing cutting-edge technology. It outlines a complete framework for successfully building a software system that provides the functionalities required by the business model. It is revolutionary as the first guide to cover everything from the technologies to how to evaluate tools to best practices for IT management. *First book to address the hot topic of how systems can be designed to maximize the benefits of program and algorithmic trading *Outlines a complete framework for developing a software system that meets the needs of the firm's business model * Provides a robust system for making the build vs. buy decision based on business requirements.
Local Note:
Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2017. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.
Genre:
Electronic Access:
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