Crisis and stock market: the role of high-frequency trading
Note translator: We quite often and often talk about high-frequency trading and related technologies in relation to Russia. However, we ourselves, with all our desire, are quite hard to cover all aspects of this interesting topic, especially what is happening abroad. Therefore, in addition to our section of translation of foreign materials (most of them can be found at the link ), we decided to launch a new heading in our blog on Habré in which we will talk about interesting subject literature. We can agree or disagree with the theses set forth in the books we cover, but in order to form our opinions, they must be read. Today we have the first issue, comments and suggestions on the format are welcome in the comments. Enjoy reading!
After the release of the bestseller “The big game for the slide. The secret springs of financial catastrophe ”(The Big Short), in which Michael Lewis debunked the myths of the financial crisis era, the author's interests shifted to other issues. And yet, there is no reason to doubt that Lewis continues to reflect on the role played by the crisis in modern markets.
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Lewis's latest book, Fast Boys ( Flash Boys: A Wall Street Revolt ), tells the story of Sergei Aleinikov, a Goldman Sachs programmer who was jailed for stealing Goldman's high-frequency trading algorithm code after being fired from an investment bank. The history of Aleinikov helps to more clearly present the "opaque" world of high-frequency trading. On Monday [ March 31, 2014 - the comment of trans. ] the book goes on sale. Its publisher was WW Norton & Co.
During a discussion with New York Times columnist Diana Henriques at the annual conference of the Community of American Business Publishers and Authors in Phoenix, Lewis did not answer the questions about the new book, but said that the idea was based on an article from Vanity magazine Fair, published last fall - can be derived from simple inference:
"I was interested that after the greatest financial crisis of the time - in which Goldman Sachs played a significant role - it turns out that if someone is imprisoned, it is the one who has harmed Goldman Sachs himself."
Lewis adds that after the financial crisis, high-frequency trading forced the markets to “adapt” to the new rules. In a subsequent "60-minute" interview, he states that high-frequency trading harms the average investor.
Michael lewis
A lengthy discussion during the Conference touched upon other Lewis books, including “MoneyBall. How math changed the world's most popular sports league ”(Moneyball), telling the story of how Bill Beane, general manager of Oakland A baseball team, first began using statistics to look for undervalued players.
Lewis declares: he realized for the first time that the story that fascinated him was worth writing a book when he had to wait in the changing room of a baseball team and see all the players naked - this moment he called disgusting. After he told Bean, how repulsive the team seemed to him, Lewis received an unexpected answer: this, according to Bean, was the whole point of his strategy. If players look like excellent athletes, they are more likely to be valued by the market. But the unattractive features of the team - such as, for example, the presence of a clumsy player - allowed Athletics to create a strong team, the costs of maintaining which accounted for a tenth of the budgets of more promoted and popular teams. This moment was for Lewis insight.
After the release of the bestseller “The big game for the slide. The secret springs of financial catastrophe ”(The Big Short), in which Michael Lewis debunked the myths of the financial crisis era, the author's interests shifted to other issues. And yet, there is no reason to doubt that Lewis continues to reflect on the role played by the crisis in modern markets.
')
Lewis's latest book, Fast Boys ( Flash Boys: A Wall Street Revolt ), tells the story of Sergei Aleinikov, a Goldman Sachs programmer who was jailed for stealing Goldman's high-frequency trading algorithm code after being fired from an investment bank. The history of Aleinikov helps to more clearly present the "opaque" world of high-frequency trading. On Monday [ March 31, 2014 - the comment of trans. ] the book goes on sale. Its publisher was WW Norton & Co.
During a discussion with New York Times columnist Diana Henriques at the annual conference of the Community of American Business Publishers and Authors in Phoenix, Lewis did not answer the questions about the new book, but said that the idea was based on an article from Vanity magazine Fair, published last fall - can be derived from simple inference:
"I was interested that after the greatest financial crisis of the time - in which Goldman Sachs played a significant role - it turns out that if someone is imprisoned, it is the one who has harmed Goldman Sachs himself."
Lewis adds that after the financial crisis, high-frequency trading forced the markets to “adapt” to the new rules. In a subsequent "60-minute" interview, he states that high-frequency trading harms the average investor.
Michael lewis
A lengthy discussion during the Conference touched upon other Lewis books, including “MoneyBall. How math changed the world's most popular sports league ”(Moneyball), telling the story of how Bill Beane, general manager of Oakland A baseball team, first began using statistics to look for undervalued players.
Lewis declares: he realized for the first time that the story that fascinated him was worth writing a book when he had to wait in the changing room of a baseball team and see all the players naked - this moment he called disgusting. After he told Bean, how repulsive the team seemed to him, Lewis received an unexpected answer: this, according to Bean, was the whole point of his strategy. If players look like excellent athletes, they are more likely to be valued by the market. But the unattractive features of the team - such as, for example, the presence of a clumsy player - allowed Athletics to create a strong team, the costs of maintaining which accounted for a tenth of the budgets of more promoted and popular teams. This moment was for Lewis insight.
Source: https://habr.com/ru/post/218793/
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