Golden
Networking brings Tech2Trade Expo 2013 (www.Tech2TradeExpo.com),
World's Most Influential Alternative Investments Conference Series,
including High Frequency Trading Leaders Forum 2013, "Strategic
and Tactical Insights for Investors, Speed Traders, Brokers and
Exchanges," New York City, London, Chicago, Singapore and
Frankfurt (www.High-Frequency-Trading-Conference.com).
New
York City, NY, USA (June 25, 2013) -- A deeply liquid market is
considered a sign of a healthy market with lots of participants, but
Commissioner Bart Chilton, Commodity Futures Trading Commission, says
all liquidity may not be the same and could be distorting markets.
The CFTC is concerned that some of the liquidity that may be provided
by high-frequency traders could be "fantasy liquidity created by
'wash' sales," which is prohibited under both the Commodity
Exchange Act and exchange rules.
High-frequency
traders enter and exit the market quickly and can do so multiple
times a day, helping to create a more liquid market. But they're a
relatively new addition to the trading world and Chilton said how
they operate needs closer scrutiny, especially since at times they
can be 30% to 50% of a market. The concern is over "wash"
trades, which happens a trader trades with himself, in other words
puts out a bid price and matches it. "If you're trading with
yourself, you have nothing to lose, you're not taking a risk. If this
was occurring a little bit, it would be no harm, no foul,"
Chilton said.
However,
he said, this is happening more than a little bit, calling the wash
trades "voluminous." Chilton said there may be two reasons
why these wash trades are happening. One is to make it look like
there is deep volume to entice other people to trade those markets.
Second, these traders may be part of legitimate market-maker
programs, which is when an exchange pays a market-maker to provide
liquidity. "But it's dangerous if you're trading with yourself
and taking no risk. It can also affect price discovery and hurts
consumers," he said.
To
discuss the eternal liquidity challenge, Golden Networking is pleased
to host Tech2Trade Expo 2013's High Frequency Trading Leaders Forum
2013 (http://www.High-Frequency-Trading-Conference.com),
"Strategic and Tactical Insights for Investors, Speed Traders,
Brokers and Exchanges", this July 30 in New York City, September
18 in London., October 8 in Chicago, October 24 in Singapore and
November 21 in Frankfurt.
"Strategic
and Tactical Insights for Investors, Speed Traders, Brokers and
Exchanges," is the theme of High-Frequency Trading Leaders Forum
2013, forum that will provide attendees in New York City, London,
Chicago, Singapore and Frankfurt with the most up-to-date review of
where this ever-changing industry stands through an insightful
keynote speeches and thought-provoking panels with leaders in the
field. "High-frequency trading will no doubt play an ever larger
role as computer technology advances and the global exchanges embrace
fast electronic access." said Edgar Perez, author of The Speed
Traders and the forthcoming Knightmare on Wall Street. Recognized
experts, regulators, and strategists, will return to High-Frequency
Trading Leaders Forum 2013 to provide the information practitioners
are looking for in an open and unbiased environment, highly conducive
to the most efficient and effective networking.
High
Frequency Trading Leaders Forum 2013, co-located with Hedge Funds
Leaders Forum 2013 and Derivatives Trading Forum 2013, is produced by
Golden Networking (http://www.goldennetworking.net),
the premier networking community for business executives,
entrepreneurs and investors. Panelists, speakers and sponsors are
invited to download our Information Package or contact Golden
Networking directly by calling +1-414-FORUMS0 or sending an email to
information@goldennetworking.net.
Media
Contact:
Julia
Petrova
Media
Relations Coordinator
Golden
Networking
+1-414-FORUMS0
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