Dave Fry, founder and publisher of ETF Digest, and Steve Hammer, founder of HFT Alert, discuss high frequency trading operations, fundamentals, the difference between algorithmic trading and high frequency trading, fluttering, latency and the role high frequency trading had in the May stock market flash crash in 2010.
In this interview Steve showcases HFT Alert’s functionality and explains how high frequency trading trading can be analyzed to help traders in the stock market.
A paper published by Indiana University and Manchester University suggests that social media can be used to predict market movement. Specifically Twitter was used to predict movements in the Dow Jones correctly with 87% accuracy.
This idea of mining social media for an edge in the markets has already spread to the wonderful world of hedge funds. Based in London Derwent Capital Markets launched a $40 million fund in February where the chief stategy is to use algorithms to mine Twitter for data that can help the fund predict future movement in the markets.
If the fund proves successful its only a matter of time before other institutional buyers turn to social media analysis to trade the markets. Johan Bollen an associate professor at Indiana University sheds some light on this research.
In this video the founder and CEO of SecondMarket , Barry Silbert, talks about his vision for the future of capital markets. Barry Silbert started SecondMarket in 2004 and has grown it into the major market place where privatly held company stock is traded. Shares of Facebook, Groupon, Twitter and all the popular privatly held companies people have grown to know are traded on Barry’s platform.
Barry has a vision that SecondMarket will become the next NASDAQ or New York Stock Exchange. His idea is that SecondMarket can provide for an alternative route for growing young companies to pursue other than going public. For example rather than a private company listing on the NASDAQ a company can one day opt to “list” itself on SecondMarket. More on his ideas and the beginnings of SecondMarket below.