High-frequency trading (HFT) is the trade of securities (such as stocks) in a matter of microseconds. Supercomputers use complex mathematical algorithms to scan the marketplace and execute millions of orders instantaneously. The algorithms decide options such as timing and price and will frequently execute an entire order without requiring any human interaction.
High-frequency traders then collect the individually tiny gains (perhaps a tenth of a penny/cent on each share), which, when combined, amount to significant sums.
HFT gained popularity in 1998, after the Securities Exchange Commission authorised electronic exchanges. The initial idea behind HFT was to open the marketplace up to anyone with a computer, but as HFT has grown individual investors have been unable to compete with the powerful computer formulas utilised by the traders…
Click on the link below to read the rest of the Ince & Co briefing.
News from Ince & Co
News from The Lawyer
Briefings from Ince & Co
The case of Swallowfalls v Monaco Yachting concerned the construction of a yacht that was to be paid for by instalments upon the achievement of particular construction milestones.
The Court of Appeal has ruled in underwriters’ favour regarding the use of a fraudulent device by an assured in connection with the presentation of an insurance claim.