Financial Engineering Seminar Series - March 7 - Haim Bodek, "The Problem of High Frequency Trading"
Thursday, March 7, 2013 – 5:00 pm
Location: Babbio 122 and Online via Wimba
The Problem of High Frequency Trading
Managing Principal - Decimus Capital Markets, LLC
ABSTRACT: High frequency trading (HFT) is one of the most talked about, controversial and significant topics affecting markets today. This seminar will explain how the seemingly coincidental intensification of HFT activity in 2007 is intimately related to the adoption of Rule 610 and Rule 611 of Regulation NMS, a regulatory framework meant to bind multiple equity markets into a fair, competitive national market system. Electronic exchanges and high frequency trading firms exploited this regulatory framework for mutual gain, introducing a number of unfair and discriminatory order handling practices which gave HFTs and edge over institutional investors. How should we address what has become a crisis point with regard to the current state of US equities market structure? Regulation NMS must be evolved to strengthen markets, defend regulations, protect investors, and regain the public trust.
BIO: Haim Bodek is a Managing Principal of Decimus Capital Markets, LLC, a tactical consulting and strategic advisory firm focused on high-frequency trading and securities market structure. Mr. Bodek was formerly a founder and Chief Executive Officer of Trading Machines, LLC, an independent high-frequency options trading firm. Before that, Mr. Bodek was a Managing Director and Joint Global Head of Electronic Volatility Trading at UBS and a financial engineer at Goldman Sachs. Mr. Bodek is an electronic trading executive and algorithmic trading strategist with 15 years of experience in the automated trading space. His career, experiences, and advocacy for regulatory reform of securities markets are extensively profiled in “Dark Pools” by Scott Patterson, a journalistic account of transformational changes in the securities industry. Mr. Bodek’s book “The Problem of HFT – Collected Writings on High Frequency Trading & Stock Market Structure Reform” came out in January 2013.
The Financial Engineering Seminar Series is a centerpiece of the graduate Financial Engineering program and the undergraduate Quantitative Finance programs at Stevens Institute of Technology. Its mandate is to arrange talks on current research and industry trends in financial engineering and quantitative finance that will be of interest to those who work in both industry and academia. This event is co-sponsored by the School of Systems & Enterprises, Financial Engineering Department and the Howe School of Technology, Quantitative Finance Department.