Berkeley study finds scarce evidence of market ‘front-running’

Two University of California, Berkeley professors have taken a deep dive into new data and found that claims in Michael Lewis’ bestseller Flash Boys that retail investors are being gouged, or “front-run,” by high-speed traders not to be true – at least not now. Professors Robert Bartlett and Justin McCrary said their findings contradict the common belief that fast traders systematically exploit others who rely on public data feeds, which in the past were notoriously slow. (The Globe And Mail)

globe-and-mail

This Legendary Hedge Fund Hopes to Use Physics to Battle Wall Street’s Speed Demons

Renaissance Technologies, the investment fund known for its ultra-educated workforce and quant trading style, has a plan to beat high frequency traders at their own game. Their plan involves algorithms, servers and the world’s most accurate timekeeper currently used for GPS satellites and deep space exploration, the atomic clock. (Fortune)

fortune

Legendary Hedge Fund Wants to Use Atomic Clocks to Beat High-Speed Traders

Patent application no. 14/451,356 has one goal: to outrun the speed demons of Wall Street. The 16-page document was quietly published by the U.S. Patent and Trademark Office in February. Replete with schematic drawings, the filing describes a novel way for “executing synchronized trades in multiple exchanges.” The invention consists of not only sophisticated algorithms and a host of computer servers, but atomic clocks to sync orders to within a few billionths of a second. (Bloomberg)