[MoneyTech] Data-feed arbitrage
The joint CFTC-SEC hearing into the ‘flash crash’ has attempted to shed a light on what may have brought about the infamous sell-off on May 6.
One area probed on Wednesday, in the regulators’ first session,
[MoneyTech] Information asymmetry, PR wire releases edition
FT Alphaville has noted before that when it comes to financial markets, and especially in the battle between institutional investors and the day trader, someone will always have the data first.
The Chicago PMI report is made available to subscribers before it hits the general investing public,
[MoneyTech] All hail the (tiny) predictive power of FT Alphaville
We’re not quite sure how to take this particular compliment:
FT Alphaville Disproportionally Interesting Compared to General News in Predicting Stock Returns
That’s from Recorded Future, a young firm specialising in something called “temporal and predictive analytics.”
[MoneyTech] Google and Twitter v the investment banks
How do Wall Street’s lawyers and lobbyists find the time?
Somehow, while fending off the complaints of munis burnt by derivatives, contending with proposals to overhaul the US financial system and worrying about the SEC poking around,
[MoneyTech] The high-frequency flack
Now here’s an interesting development in regulatory capture, uh, the growing diversity of industry and regulatory links in US securities. Flash via Reuters:
RTRS-FORMER SEC STAFFER OVERDAHL TO BE SPOKESMAN OF FUTURES INDUSTRY ASSOC’S NEW HIGH FREQUENCY TRADERS LOBBY GROUP-SOURCES
That would be James Overdahl,
[MoneyTech] ‘Someone will always have the data first’
Financial blogger Kid Dynamite has weighed in on “latency arbitrage”: the fact that some investment firms have access to data — and are subsequently able to trade on such — before other market participants.
[MoneyTech] The hedge funds are watching us…
Okay, maybe not ‘us’ as in FT Alphaville, but they are watching some other financial blogs.
From Tim Human at the Cross Border Group:
Data firm monitoring influential blog sites Hedge funds are testing out a data feed produced by monitoring a group of financial commentators that includes bloggers.
[MoneyTech] Rise of the news-reading machines
From the FT — some giant leaps for robot-kind in the world of trading:
The arms race in trading technology is set to intensify this week as Thomson Reuters, the news and market data company, on Monday unveils a service for “high-frequency” traders allowing them to make split-second trading decisions based on news articles “before the information moves the market” .
[MoneyTech] Why trading machines don’t like news releases
Well, who knew?
Algorithmic FX trading bots — which use computer formulae to trade currencies at high frequency — apparently don’t like news releases, or at least, not initially, according to a new working paper from the Federal Reserve.
[MoneyTech] Social investing site Covestor wants to shake up fund management
Ever had the urge to share the performance of your stock portfolio? You know, for bragging rights, or in an attempt to convince Goldman Sachs to hire you?
No? Well there’s a whole bunch of people out there on the interweb who have – and quite a lot of them congregate at Covestor,
[MoneyTech] NASDAQ, NYSE and the battle for (free) US financial data
Interesting nugget from Reuters (via @defrag): Nasdaq and the New York Stock Exchange (NYSE) now generate more revenue from selling market data than from equities trading. At Nasdaq, the market data accounts for 20 per cent of revenue,
[MoneyTech] Through the looking Glass(Door)
So, how much do you make? And what’s it really like working for (insert-name-here)?
Don’t worry, there’s no need to tell us, because now we can satisfy our voyeuristic urges do the research over at Glassdoor.com,
[MoneyTech] Stock geeks + Twitter = StockTweets
Roger Ehrenberg. Paul Kedrosky. Howard Lindzon.
If those names mean anything to you, you’re already fairly hip to the world of US financial bloggers. If, on the other hand, you’re drawing a blank – you’re probably based in the UK and spend very little time poring over RSS feeds and even less time on Twitter.
[MoneyTech] Filtering the noise and creating the signal
Many of the more interesting presentations at the Money:Tech conference dealt with the topic of data overload, with an emphasis on how best to mine the Web and related online resources for “investment-grade information.”
[MoneyTech] Wall Street meets Silicon Valley
How do you find Alpha in a world where data is essentially a commodity? That was the question posed by the organisers of the Money:Tech conference in New York this week, Messrs. Tim O’Reilly and Paul Kedrosky.