Welcome!

News Feed Item

MGSM Embarks on Landmark Research Into the Impact of High Frequency Trading

SYDNEY, AUSTRALIA -- (Marketwired) -- 07/03/14 -- A team of leading financial researchers from the Macquarie Graduate School of Management (MGSM) will undertake Australia's first comprehensive study into the impact of High Frequency Trading (HFT) on the quality of Australia's financial market.

Supported by more than $1 million in total research funds and in-kind contributions, including $300,000 from the Australian Research Council (ARC), the project will seek to provide policy-makers, exchange operators and investors with new insight into the significant issues associated with the microscopic time intervals at which HFT occur.

"The advent of HFT, a type of sophisticated algorithmic trading which enables sophisticated computers to trade large amounts of stock at extremely high rates of speed, has raised many policy issues relating to market structure and stability," said research lead and Dean of MGSM, Professor Alex Frino.

"By investigating the impact of HFT on market quality, this research project aims to achieve more efficient regulation, improve financial markets, make Australia attractive to investors and enhance the quality of retirement for residents," he said.

According to Professor Frino, the growing apprehension about HFT has led regulators around the world to, perhaps prematurely, release guidance and rules clarifying their expectations of market operators and participants. This includes those released by ASIC in Australia in 2013.

"Financial markets are essential to the functioning of the Australian economy. Ordinary residents have billions invested in financial markets through superannuation. Deterioration in market quality leads to poor consumer confidence, an increase firms' cost of capital and transaction costs, and ultimately reduces retirement quality, so proper regulation of HFT is critical," said Professor Frino.

"By providing ground breaking insights into the impact of HFT, this research will enable the development of effective regulatory frameworks to ensure Australia's market quality," said Professor Frino.

The Australian Securities Exchange (ASX) is supporting this project by allowing the research team access to their transaction data which is time-stamped to the nearest microsecond directly from the trading engine, providing the most precise data available.

"ASX believes it is important that data is analysed so that market structure settings continue to be consistent with the interests of investors and long-term growth," said Peter Hiom, ASX's Deputy CEO.

"Professor Frino and his team have strong capabilities that are internationally recognised and we are pleased to support this MGSM initiative."

MGSM's Dean, Professor Alex Frino, will be joined in this project by MGSM's Professor Andrew Lepone and Dr Jeff Wong who will specifically seek to:

  • Discover how the introduction of co-location services affects HFT activity and the subsequent impact on market quality and institutional trading costs across 42 international exchanges.
  • Examine the effects of HFT behaviour on price discovery and liquidity around price-sensitive information events across 42 major international exchanges.
  • Research market integrity issues associated with exploitation of speed differentials (e.g. low latency) by HFT.
  • Examine how the advent of alternative trading platforms across 50 global venues affects market quality and institutional trading costs through HFT behaviour.
  • Construct a new market quality matrix that captures HFT complexity in modern financial markets.

Company Logo
http://release.media-outreach.com/i/Download/1027

About Macquarie Graduate School of Management (MGSM)
MGSM is one of the oldest business schools in Australia and has maintained a reputation for providing high quality, flexible postgraduate education over the past 40 years. The schools MBA and management programs are formally accredited by AACSB International and are ranked consistently among the top business schools globally. With world-class campuses in Sydney and Hong Kong, MGSM's comprehensive MBA Program, and Postgraduate Diploma and Postgraduate Certificate Programs, are designed to fulfill the needs of the experienced management professional, extend and challenge students and provide relevant, higher management and leadership skills. The school is also an acknowledged leader in the delivery of short-term Executive Education Programs and customised degree or non-degree programs for organisation.

Contact:
Michelle Wood
Email Contact
9850 8988 or 0466 655 115

Megan Gibbens,
Email Contact
9850 9015 or 0412 717 74

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
SYS-CON Events announced today that Outscale will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Outscale's technology makes an automated and adaptable Cloud available to businesses, supporting them in the most complex IT projects while controlling their operational aspects. You boost your IT infrastructure's reactivity, with request responses that only take a few seconds.
DevOps at Cloud Expo – being held October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real r...
SYS-CON Events announced today that CollabNet, a global leader in enterprise software development, release automation and DevOps solutions, will be a Bronze Sponsor of SYS-CON's 20th International Cloud Expo®, taking place from June 6-8, 2017, at the Javits Center in New York City, NY. CollabNet offers a broad range of solutions with the mission of helping modern organizations deliver quality software at speed. The company’s latest innovation, the DevOps Lifecycle Manager (DLM), supports Value S...
SYS-CON Events announced today that Enzu will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive ad...
SYS-CON Events announced today that Twistlock, the leading provider of cloud container security solutions, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Twistlock is the industry's first enterprise security suite for container security. Twistlock's technology addresses risks on the host and within the application of the container, enabling enterprises to consistently enforce security policies, monitor...
SYS-CON Events announced today that Outscale, a global pure play Infrastructure as a Service provider and strategic partner of Dassault Systèmes, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2010, Outscale simplifies infrastructure complexities and boosts the business agility of its customers. Outscale delivers a secure, reliable and industrial strength solution for its customers, which i...
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus intern...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
Everywhere we turn in our industry we can find strong opinions about the direction, type and nature of cloud’s impact on computing and business. Another word that is used in every context in our industry is “hybrid.” In his session at 20th Cloud Expo, Alvaro Gonzalez, Director of Technical, Partner and Field Marketing at Peak 10, will use a combination of a few conceptual props and some research recently commissioned by Peak 10 to offer a real-world consideration of how the various categories of...
In order to meet the rapidly changing demands of today’s customers, companies are continually forced to redefine their business strategies in order to meet these needs, stay relevant and continue to see profitable growth. IoT deployment and development is integral in this transformation, and today businesses are increasingly seeing the value of investing their resources into IoT deployments. These technologies are able increase ROI through projects such as connecting supply chains or enabling sm...
While some vendors scramble to create and sell you a fancy solution for monitoring your spanking new Amazon Lambdas, hear how you can do it on the cheap using just built-in Java APIs yourself. By exploiting a little-known fact that Lambdas aren’t exactly single threaded, you can effectively identify hot spots in your serverless code. In his session at 20th Cloud Expo, David Martin, Principal Product Owner at CA Technologies, will give a live demonstration and code walkthrough, showing how to ov...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
This talk centers around how to automate best practices in a multi-/hybrid-cloud world based on our work with customers like GE, Discovery Communications and Fannie Mae. Today’s enterprises are reaping the benefits of cloud computing, but also discovering many risks and challenges. In the age of DevOps and the decentralization of IT, it’s easy to over-provision resources, forget that instances are running, or unintentionally expose vulnerabilities.
In his session at 20th Cloud Expo, Brad Winett, Senior Technologist for DDN Storage, will present several current, end-user environments that are using object storage at scale for cloud deployments including private cloud and cloud providers. Details on the top considerations of features and functions for selecting object storage will be included. Brad will also touch on recent developments in tiering technologies that deliver single solution and an end-user view of data across files and objects...
Multiple data types are pouring into IoT deployments. Data is coming in small packages as well as enormous files and data streams of many sizes. Widespread use of mobile devices adds to the total. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the tools and environments that are being put to use in IoT deployments, as well as the team skills a modern enterprise IT shop needs to keep things running, get a handle on all this data, and deli...