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
As the world moves toward more DevOps and Microservices, application deployment to the cloud ought to become a lot simpler. The Microservices architecture, which is the basis of many new age distributed systems such as OpenStack, NetFlix and so on, is at the heart of Cloud Foundry - a complete developer-oriented Platform as a Service (PaaS) that is IaaS agnostic and supports vCloud, OpenStack and AWS. Serverless computing is revolutionizing computing. In his session at 19th Cloud Expo, Raghav...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
Enterprises have forever faced challenges surrounding the sharing of their intellectual property. Emerging cloud adoption has made it more compelling for enterprises to digitize their content, making them available over a wide variety of devices across the Internet. In his session at 19th Cloud Expo, Santosh Ahuja, Director of Architecture at Impiger Technologies, will introduce various mechanisms provided by cloud service providers today to manage and share digital content in a secure manner....
StarNet Communications Corp has announced the addition of three Secure Remote Desktop modules to its flagship X-Win32 PC X server. The new modules enable X-Win32 to safely tunnel the remote desktops from Linux and Unix servers to the user’s PC over encrypted SSH. Traditionally, users of PC X servers deploy the XDMCP protocol to display remote desktop environments such as the Gnome and KDE desktops on Linux servers and the CDE environment on Solaris Unix machines. XDMCP is used primarily on comp...
Fact: storage performance problems have only gotten more complicated, as applications not only have become largely virtualized, but also have moved to cloud-based infrastructures. Storage performance in virtualized environments isn’t just about IOPS anymore. Instead, you need to guarantee performance for individual VMs, helping applications maintain performance as the number of VMs continues to go up in real time. In his session at Cloud Expo, Dhiraj Sehgal, Product and Marketing at Tintri, wil...
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Qosmos has announced new milestones in the detection of encrypted traffic and in protocol signature coverage. Qosmos latest software can accurately classify traffic encrypted with SSL/TLS (e.g., Google, Facebook, WhatsApp), P2P traffic (e.g., BitTorrent, MuTorrent, Vuze), and Skype, while preserving the privacy of communication content. These new classification techniques mean that traffic optimization, policy enforcement, and user experience are largely unaffected by encryption. In respect wit...
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...