Little presentation of using Big Data and HFT in Stock Exchange and Forex and potential problems from trades executed by black-box trading. New future for stockbrokers.

1. Big Data in Stock
Exchange
DMYTRO MELNYCHUK

2. New York Stock Exchange: To be listed on the NYSE, a company must have issued at least a million shares of stock
worth $100 million and must have earned more than $10 million over the last three years

3. Who is stockbroker?
A stockbroker is a regulated professional individual, usually associated with a brokerage firm or broker-dealer, who
buys and sells stocks and other securities for both retail and institutional clients

4. New York Stock Exchange
OLD NYSE(1920) NEW NYSE(2016)

5. High-frequency trading
is a type of algorithmic trading characterized by high speeds, high turnover rates, and high order-to-
trade ratios that leverages high-frequency financial data and electronic trading tools

6. High-frequency trading is trading that leverages
high-frequency financial data
and electronic trading tools
• High-frequency trading firms represented 2% of 20,000 firms in market, but 73% money of all operation at
2016 press on HFT companies
People
trading
26%
HFT
74%
Peace of many by method
of trade in 2009
People trading HFT
According to a study in 2010 by Aite Group, about
a quarter of major global futures volume came from
professional high-frequency traders
People
trading
24%
HFT
76%
Major global futures volume in
2010
People trading HFT

7. HFT Brokers Dom Maklerski S.A. is an independent brokerage house, that
specialize in trading CFD based on Forex, stock indices, commodities and
equity market.
HFT Brokers – created by Traders for Traders(New York, USA)
Founded: 2006
Type: Public Company
Industry: Capital Markets
Company Size: 51-200 employees
Headquarters: Warsaw, Poland
Specialties Forex, Trading, High Speed
Trading, High Frequency
Trading, Education
Website: http://www.hftbrokers.pl
High-frequency trading in Poland
Main office in the picture >>

8. HFT Brokers Dom Maklerski S.A.
Headquarters : Str. Prosta 51, 00-838 Warsaw

9. Nanex is one of the best firm that offers streaming data on all market
transactions and distributes the data in real-time to clients (typically,
traders and financial analysis firms) and allows them to do analysis and
visualization in real-time

10. How does the HFT during 7 seconds
at Nanex platform
http://youtube.com/watch?v=a-9A0ar70pI

11. https://www.youtube.com/watch?v=6f486Qg4Fis
High-frequency Trading Model

12. Procent of orders generated by algorithms
*Ultra-low latency direct market access (DMA)

13. High Touch trading so hard today

14. HFT is the reason of flash crashes
A flash crash is a very rapid, deep, and volatile fall in security prices occurring within an extremely short time period. A flash crash
frequently stems from trades executed by black-box trading, combined with high-frequency trading, whose speed and
interconnectedness can result in the loss and recovery of billions of dollars in a matter of minutes and seconds.
Two notable flash crashes have occurred in history:
April 23, 2013, Flash Crash
Singapore Exchange which lost $6.9 billion in capitalization and
saw some stocks lose up to 87 percent of their value
May 6, 2010, Flash Crash
$4.1 billion trade on the NYSE resulted in a loss to
the Dow Jones Industrial Average of over 1000
points

15. Market need to control HFT via
algorithmic tests
When the market operates
normally (left subplot), almost all
of the HFT agents are in control of
their inventory (greenish color). In
crash period (right), most of the
HFT agents gain large inventories
(red) and the network is highly
interconnected: over 85 percent of
the transactions are HFT-HFT.

16. Despite the problems, but
high-frequency trading is
our future