The Options Insider Radio Network

Trading Tech Talk


Trading Tech Talk is the program where we break down all the amazing technology that takes your trades from the click of a mouse to the clearinghouse and back again. Each episode we’ll break down the latest developments in the world of trading tech, bring you exclusive conversations with industry thought leaders, and answer your pressing technology questions. 

iTunes
Stitcher
 

 

Listen to the latest episode

Open pop-out mini-player.


Show Archive

Trading Tech Talk 60: Talking Buy and Build with Itiviti

CTO Interview Featuring Jesper Alfredsson, President Americas at Itiviti. He discusses: What is Itiviti? The history of CameronTec Who is the target market? Finding the middle way for infrastructure expansion Don't spend time on the plumbing Recent...
Posted March 23rd, 2017

CTO Interview Featuring Jesper Alfredsson, President Americas at Itiviti.

He discusses:

  • What is Itiviti?
  • The history of CameronTec
  • Who is the target market?
  • Finding the middle way for infrastructure expansion
  • Don't spend time on the plumbing
  • Recent upgrades, including smart order routing for options orders

Hot Topics in Tech:


Trading Tech Talk 59: Finding New Market Wizards with FundSeeder

CTO Interview with Jack Schwager: Author extraordinaire and now co-founder of Fund Seeder. Mr. Schwager is the author of Market Wizards, Hedge Fund Market Wizards, A Complete Guide to the Futures Markets: Fundamental Analysis, Trading Spreads and...
Posted January 27th, 2017

CTO Interview with Jack Schwager: Author extraordinaire and now co-founder of Fund Seeder. Mr. Schwager is the author of Market Wizards, Hedge Fund Market Wizards, A Complete Guide to the Futures Markets: Fundamental Analysis, Trading Spreads and Options (and the second edition just hit store shelves!)

He discusses:

  • Was he surprised by the reaction to Market Wizards?
  • How did that book come about?
  • His new project in the trading tech space: FundSeeder
  • What is FundSeeder?
  • How does the funding process work?
  • Do traders have to reveal their secret sauce in order to receive funding?

Hot Topics in Tech: What is on our radar from a tech perspective?

  • Tech firm creates Trump monitor for stock markets. A London-based Fintech firm Trading.co.uk is launching an app that will generate trading alerts for shares based on comments made on social media by Donald Trump.
  • Launching an open-outcry trading floor? How very 21st century.Box Options Exchange is building the first new trading floor in Chicago in decades - Boyle expects to attract traders who prefer open outcry for big orders and keep them with a more efficient 21st-century floor model.

Trading Tech Talk 58: Can AI Hunt Rogue Traders?

Hot Topics in Tech. Today we are featuring Alexander Lamb, Head of Business Development at The Technancial Company. Alex was previously a guest in March 2016. (You can access that episode here.) Risk Management and AI: effective or ??? Its...
Posted October 14th, 2016

Hot Topics in Tech. Today we are featuring Alexander Lamb, Head of Business Development at The Technancial Company. Alex was previously a guest in March 2016. (You can access that episode here.)

  • Risk Management and AI: effective or ??? Its penetration into the business world has brought with it new services which aim to help automate and speed up a range of activities, including financial risk management.
  • Wall Street next tech frontier is hacking into emotions of traders. Banks have already set up big-data teams to harvest insights from the terabytes of customer information they possess. Now they are looking inward to see whether they can improve operations and limit losses in their biggest cost center: employees.
  • Tech is driving consolidation in the exchange space. CBOE Holdings Inc., agreed to acquire Bats Global Markets Inc. for about $3.2 billion to expand into stocks, ETFs and currencies trading.
  • Exchanges defeat appeal of U.S. high-frequency trading lawsuits - A federal appeals court on Friday rejected an investor's attempt to revive lawsuits accusing major U.S. exchanges of selling early access to market data to high-frequency traders, the subject of Michael Lewis' 2014 best-seller "Flash Boys."

The Inbox: In which the listeners take control

  • Question from Andrew Simmons: There is lots of acronym soup in trading tech. Two terms I have heard bandied about quite a bit are EMS and OMS. Can you explain these terms and maybe their similarities or differences?
  • Question from JVigs: Are there any independent third party services I can use to analyze my margin and options buying power? This seems like a bit of a dark art these days in the options market. I do not really agree with the numbers generated by my broker and it would be nice to have some data in my corner. So much effort is devoted to trading in milliseconds but this important part of the market remains relatively untapped. Recommendations please. Great hit with Howard from StockTwits. Keep it up.

Trading Tech Talk 57: Talking StockTwits and Stocktoberfest with Howard Lindzon

CTO Interview: Today we are featuring Howard Lindzon, Founder of StockTwits, and Founder of Wallstrip. He discusses: Wallstrip and its flip to CBS The genesis and evolution of StockTwits Twitter pulling the rug out from under StockTwits How does...
Posted September 7th, 2016

CTO Interview: Today we are featuring Howard Lindzon, Founder of StockTwits, and Founder of Wallstrip.

He discusses:

  • Wallstrip and its flip to CBS
  • The genesis and evolution of StockTwits
  • Twitter pulling the rug out from under StockTwits
  • How does StockTwits generate revenue?
  • Stocktoberfest (Register today for Stocktoberfest)

Hot Topics in Tech: IEX finally approved putting a 350 millisecond speed bump in place. Only two stocks will be available to trade on the opening day on Friday with another eight securities will start trading on IEX August 24 - August 29, IEX will begin listing a much wider universe, including all NYSE and Nasdaq-listed stocks. Renaissance Technologies hopes to use physics to battle Wall Street speed demons. Their plan involves algorithms, servers and the worlds most accurate timekeeper currently used for GPS satellites and deep space exploration, the atomic clock.


Trading Tech Talk 56: Can a Watchlist App Be Sexy?

CTO Interview: Today we are featuring Jason Pang, CEO of Sparkfin. He discusses: What is Sparkfin? What makes the Sparkfin Watchlist app unique? What was the genesis of this? Were the Sparkfin people just fed up with current watchlist offerings? Is...
Posted August 2nd, 2016

CTO Interview: Today we are featuring Jason Pang, CEO of Sparkfin.

He discusses:

  • What is Sparkfin?
  • What makes the Sparkfin Watchlist app unique?
  • What was the genesis of this? Were the Sparkfin people just fed up with current watchlist offerings?
  • Is the plan to remain a standalone service or to license the app to brokers as essentially a plug-and-play community module?
  • Is it possible to execute through the app directly?
  • Does Sparkfin offer curated lists as well? How does that work? Who curates them?
  • What about paper trading / tracking? Can that be done through the app?
  • Any plan to expand beyond stocks in the future?

The Inbox: Listener questions and comments

  • Question from Alan Fromme - What is the future of market data? Will we ever see an era when the great monopolies are broken, and this data comes freely, or reasonably available to all?
  • Question from NanFan - Caught you panel and the after show on your network. Great job particularly on the market data. I particularly enjoyed hearing the smaller firms perspective. It seems like market data is an endless black hole of costs for firms like that. Is there any hope for new firms in this space when it comes to pushing back on market data fees? Perhaps regulatory relief or a coalition of market data vendors that can push back against the exchange monopolies?

Trading Tech Talk 55: Moving Futures to the Cloud

CTO Interview: Today Mark and Henry are joined by Ryan Hansen, President of the new futures brokerage, Tradovate. They discuss: What is Tradovate? The benefits of multi-platform trading applications Membership pricing advantages Futures leading the...
Posted June 28th, 2016

CTO Interview: Today Mark and Henry are joined by Ryan Hansen, President of the new futures brokerage, Tradovate.

They discuss:

  • What is Tradovate?
  • The benefits of multi-platform trading applications
  • Membership pricing advantages
  • Futures leading the way in tech
  • Does the cost include payment for order flow?
  • Will options ever be included on the platform?
  • You can find out more at tradovate.com/trial

Hot Topics in Tech: What is happening in trading technology?

  • Silicon Valley to the rescue? The Long-Term Stock Exchange
  • IEX: all they want is a speedbump
  • Trading prompted by social media: CBOE S-Factors
  • Petterfy looks at the future of the brokerage space

Trading Tech Talk 54: Blockchain Explosion

Hot Topics in Tech: SEC says cyber security biggest risk to financial system. Fed should better safeguard economic data, internal watchdog says. A new trading floor in 2016? The options market turns to old tactic. CME upgrade soothes critics who...
Posted June 15th, 2016

Hot Topics in Tech: SEC says cyber security biggest risk to financial system. Fed should better safeguard economic data, internal watchdog says. A new trading floor in 2016? The options market turns to old tactic. CME upgrade soothes critics who viewed prior system as unfair. Nasdaq to unleash the machines on insider traders through Smarts investment. Why the SEC should just say "no" to IEX. Can a $24 Billion hedge fund blow the whistle? Citadel thinks so.

Blockchain Roundup: Inside the secret meeting where Wall Street tested digital cash. DTCC holds a blockchain conference. Microsoft Azure partners with R3 blockchain consortium. Red Hat announced the Open Shift Blockchain Initiative. CME Group bites on bitcoin, will now publish daily price.

The Inbox: Listener questions and comments

  • Question from Jane Neal: Does Trade Alert or Whats Trading off data on futures?
  • Question from George Constopolis: Why is most stock and options settlement still T+3? Can we not get that down to a more reasonable time frame with the current technology?

Trading Tech Talk 53: OIC 2016 Tech Panel Breakdown: Market Data, Startups and More

Live (to tape) at OIC 2016, Mark and Henry are joined by: Jesper Alfredsson, President Americas at Itiviti Karan Sood, Founder & CEO, Vest Financial They discuss: Is there one clear path that people should take for disseminating data? Hitting...
Posted May 27th, 2016

Live (to tape) at OIC 2016, Mark and Henry are joined by:

  • Jesper Alfredsson, President Americas at Itiviti
  • Karan Sood, Founder & CEO, Vest Financial

They discuss:

  • Is there one clear path that people should take for disseminating data?
  • Hitting the pause button your portfolio
  • API vs. UI
  • The double-edged sword of flexibility
  • Market data and the ensuing revenues
  • Getting to the point of regulation on fees
  • AI as it applies to the industry
  • Wrecking the market through good intentions
  • The proliferation of trading venues and the impact on business

Trading Tech Talk 52: Options, Auctions and Fintech History

Hot Topics in Tech: Henry is a hot topic! At least, he presented hot topics at the OIC Conference. Growth lately has been in ETF and index options, with equity options lagging. So many new additions, from expirations to exchanges, have exploded the...
Posted May 17th, 2016

Hot Topics in Tech: Henry is a hot topic! At least, he presented hot topics at the OIC Conference. Growth lately has been in ETF and index options, with equity options lagging. So many new additions, from expirations to exchanges, have exploded the amount of data. More exchanges? If you build it, will they come? Updates on the institutional and market maker spaces. The illusion of price improvement. Auctions? The deathknell of the options market, or necessary evil? 3x growth in five years for products. Should this growth be trimmed? More trading floors. Physical floors. Indian patent act. Milestones in fintech, going back to the 1800's.

The Inbox: Listener questions and comments

  • Anthony J: Those new chip cards slow down the payment process to a crawl. Is there some fintech solution to make this better?
  • ABC Markets: Which broker platform offers the best tech to its clients? I like IB and TOS

Trading Tech Talk 51: Making Options Less Scary Through Tech

CTO Interview: Today, Mark and Henry are joined by Karan Sood, CEO of Vest Financial. He discusses: An overview of your background in the financial technology space What is Vest? Who is the Vest target consumer? Can users choose between custom...
Posted April 29th, 2016

CTO Interview: Today, Mark and Henry are joined by Karan Sood, CEO of Vest Financial. He discusses:

  • An overview of your background in the financial technology space
  • What is Vest?
  • Who is the Vest target consumer?
  • Can users choose between custom portfolio overlays and pre-designed protection packages?
  • Are these algorithmically generated or designed by humans behind the scenes?
  • Does Vest charge commissions or is there an annual fee?
  • How does this platform differ from TradeLegs?
  • How did Vest become involved with the CBOE?
  • Vest also launched some targeted ?buffer indexes? with the CBOE, tell us about those.

Hot Topics in Tech: IEX asks for SEC exchange approval on merits of its application - IEX on Monday urged regulators to give the green light to its application to become a fully-fledged exchange outside of a broader debate that its plan has sparked about stock trading rules. CME calls time on New York open outcry options floor - The move follows the closure last year of its open outcry futures pits in Chicago and New York.

The Inbox: Listener questions and comments

  • Question from JCrow - Refresh my memory. Why the heck can they not update OI more often than once a day? Is it a technical problem or something else?

Trading Tech Talk 50: If You Cannot Beat Them, Comply Blatantly

Hot Topics in Tech: Today we are joined by guest co-host, Mark Melin from ValueWalk Vesel, LLC and Trade Alert, LLC join forces to provide specialized buy side listed options messaging - FinTech Companies will use customized alerting system to notify...
Posted April 25th, 2016

Hot Topics in Tech: Today we are joined by guest co-host, Mark Melin from ValueWalk

  • Vesel, LLC and Trade Alert, LLC join forces to provide specialized buy side listed options messaging - FinTech Companies will use customized alerting system to notify buy side clients of option trades mirroring their individual Watch List.
  • Is IEX battle nearing end as rival exchanges adopt their technology? by Mark Melin - Recent movements by rival exchanges, buttressed by the very public outreach of some firms participating in the IEX debate, have raised the specter that the IEX Exchange could be gaining momentum.
  • SEC to delay IEX stock exchange decision until June: reports - Another day, another delay for the upstart "Flash Boys" trading venue that wants to be a stock exchange.
  • As an exchange, IEX would not be fair, simple or transparent - Larry Tabb, Tabb Forum.
  • The first exchange in the "cloud" - ISE announces first implementation of a securities exchange on Amazon web services cloud computing environment.
  • Inside the nondescript building where trillions trade each day - Equinixs NY4 data center in the Secaucus, New Jersey.
  • High-speed trading remains risky, by Sal Arnuk and Joseph Saluzzi - Is sponsored academic research a threat to our financial markets or an important innovation that benefits todays investors?

The Inbox: Listener questions and comments

  • Question from Angeman - How is HFT impacting the futures markets? Is it as prevalent as in stocks?

Trading Tech Talk 49: Hunting Spoofers, Source Code Controversy, API Debate and More

CTO Interview: Today we are joined by Paul Giedraitis, Principal at Neurensic. They discuss: An overview of Paul's background in the trading technology space? What is Neurensic? What sort of market manipulation can Neurensic's software detect?...
Posted March 31st, 2016

CTO Interview: Today we are joined by Paul Giedraitis, Principal at Neurensic.

They discuss:

  • An overview of Paul's background in the trading technology space?
  • What is Neurensic?
  • What sort of market manipulation can Neurensic's software detect? Spoofing? Layering? Other?
  • It is bizarre that an old exploit like spoofing has become such a hot button topic in 2016.

Hot Topics in Tech: What is going on in financial technology?

CFTC signals retreat over 'source code' repository.

  • The US futures regulator has signaled a willingness to back down on controversial proposals allowing it to freely access the source code of high-speed traders, following complaints that it could lead to sensitive intellectual property being revealed.

SEC brings new charges over global press release hacking scheme.

  • The U.S. Securities and Exchange Commission has charged nine new defendants over what it has called a more than $100 million international scheme to hack into newswires that distribute corporate press releases and to use stolen information to conduct insider trading.

Robots are reading trader chats to stop the next wave of bank fines.

  • Robots are automating yet another bank job: the task of sifting through traders? messages to spot foul play, a process currently carried out by legions of human employees.

Do not give away the store when enabling APIs.

  • Application programming interfaces, which have been available but in a limited manner, are used to let different software applications communicate and exchange data with each other.

Trading Tech Talk 48: The Dark Art of Real-Time Risk Analysis

CTO Interview: In this segment, Mark and Henry are joined by Alexander Lamb, head of Business Development at the Technancial Company. They discuss: Margin calculations, and the behind-the-scenes voodoo The Janus margin engine, and real-time margin...
Posted March 29th, 2016

CTO Interview: In this segment, Mark and Henry are joined by Alexander Lamb, head of Business Development at the Technancial Company. They discuss:

  • Margin calculations, and the behind-the-scenes voodoo
  • The Janus margin engine, and real-time margin calculations
  • Is real-time risk and margin a response to the new regulatory environment?
  • Avoiding latency
  • What is the engine driving the machine?
  • OTC and the migration to listed options
  • Fragmentation and the resulting complexities
  • Janus risk management, market surveillance and compliance capacities
  • How do they deal with fragmentated data
  • Increased precision on timestamps, and the added complexities as a result
  • Are there any inklings of systemic risk on the horizon?

The Inbox: Listener questions and comments

  • CFTC and SEC can't handle the new era of trading. What about a new cyber-regulator?
  • Are the exchanges to blame for the rise of HFT?

Trading Tech Talk 47: Blowing the Whistle on HFT

Trading Tech Talk 47: Blowing the Whistle on HFT CTO Interview: Today we are joined by Haim Bodek, Managing Principal of Decimus Capital Markets, LLC. Haim founded Trading Machines and is featured in the book Dark Pools. Featured article: Vice -...
Posted February 26th, 2016

Trading Tech Talk 47: Blowing the Whistle on HFT

CTO Interview: Today we are joined by Haim Bodek, Managing Principal of Decimus Capital Markets, LLC. Haim founded Trading Machines and is featured in the book Dark Pools.
Featured article:

  • Vice - What led whistle-blower Haim Bodek to expose the biggest scam on Wall Street?
  • He has said Flash Boys misses the mark, what did he mean by that?
  • What are his thoughts on IEX? What changes do we need to do to make REG NMS more effective?

Hot Topics: What is buzzing

  • Tired of boogeymen portrayals, speed traders take to NYSE floor - Automated traders have an image problem. What better way to address it than to set up shop in one of the most iconic spots in global finance: the floor of the New York Stock Exchange. Citadel Securities and Global Trading Systems LLC recently agreed to buy NYSE floor-trading businesses.
    How prevalent and profitable are latency arbitrage opportunities on U.S. stock exchanges? This paper provides evidence that high-frequency traders have numerous opportunities to realize profits from latency arbitrage.
  • CFTC signals retreat over "source code" repository The US futures regulator has signaled a willingness to back down on controversial proposals allowing it to freely access the source code of high-speed traders, following complaints that it could lead to sensitive intellectual property being revealed.

Trading Tech Talk 46: Blockchain Bubble

Hot Topics in Tech: CFTC too broke to properly police flash traders, Massad says -The top U.S. derivatives regulator said his agency needs more money to keep up with the Flash Boys. Cattlemen vs CME - Round 2. Cattlemen asked for numerous changes. IEX...
Posted February 18th, 2016

Hot Topics in Tech: CFTC too broke to properly police flash traders, Massad says -The top U.S. derivatives regulator said his agency needs more money to keep up with the Flash Boys. Cattlemen vs CME - Round 2. Cattlemen asked for numerous changes. IEX battle heats up - Citadel has been one of the most vehement objectors to IEX, and has filed three public letters and held three meetings with SEC officials to lobby against the application. Aquis Exchange to ban predatory high-speed trading - A start-up European share trading venue is aiming to reboot its fortunes by banning aggressive high-speed trading from its platform. High-frequency trader warns of potential market "catastrophe" - The head of one of the biggest high-frequency trading companies has warned that there are several faultlines in the structure of increasingly electronic, automated financial markets that could lead to a ?catastrophe? in the long run.

Blockchain Update: IBM Director declares 'We?re all in on Blockchain" - John Wolpert gave a keynote speech covering the deficiencies in the approaches being taken by today?s blockchain developers and why he believes a more collaborative approach is needed to bring the tech to market. Bitcoin outage - NADEX detailed a halt in trading of its daily and weekly bitcoin binary contracts, based on the so called unavailability of the price index that underlies the contracts.

The Inbox: Listener questions and comments

  • Comment from Tom, Henderson, NV - I live on the cusp of civilization out here, so I have no choice but to take a more position oriented view on trading. I am not saying that I want to be a market maker of HFT but how funny is it that today your location (or more appropriately your connectivity) dictates your trading style? Seems somewhat backwards to me.
  • Question from N Filasco - I am over Blockchain. What is the next thing?

Trading Tech Talk 45: Diving Deep into Nat Gas Tech

CTO Interview: Today we are joined by Eric Scharf, Director of Marketing, EOX Live. They discuss: What is EOX Live? The evolution of the nat gas market Going from phone calls to electronic trading What about spread trades And more Hot...
Posted January 29th, 2016

CTO Interview: Today we are joined by Eric Scharf, Director of Marketing, EOX Live.

They discuss:

  • What is EOX Live?
  • The evolution of the nat gas market
  • Going from phone calls to electronic trading
  • What about spread trades
  • And more

Hot Topics in Tech: Cattlemen vs. the CME. IEX exchange quest spurs a "Flash Boys" fight with Citadel. Blockchain update: Security concerns, more money for startups and question from clearing firms.

The Inbox: Listener questions and comments

  • Question from Allanon - You discussed trading via smartphone in the previous episode. I think the real revolution will be trading via virtual reality. Can you imagine standing inside a swirling sea of quotes and literally picking you trades out of the air? Forget the GUI. It will all be about virtual user experience.
  • Question from JVicks - What is the next market that will fall victim to predatory HFT?

Trading Tech Talk 44: Circuit Breaker Breakdowns and Blockchain Debates

Hot Topics in Tech: The worst start to the year since forever. Unfavorable light shining on China, raising the debate on circuit breakers. NASDAQ uses blockchains in the first large-scale trade, or so they say. Symbiont disagrees. Will blockchains be...
Posted January 27th, 2016

Hot Topics in Tech: The worst start to the year since forever. Unfavorable light shining on China, raising the debate on circuit breakers. NASDAQ uses blockchains in the first large-scale trade, or so they say. Symbiont disagrees. Will blockchains be the HFT of 2016? The tech opportunities created by the regulatory environment. What have SEFs done to the world of swaps?

The Inbox: Listener questions and comments

  • Comment from Jim B. - Will there be TTT awards for the best and worst developments of 2015?
  • Question from George S. - How far are we away from being able to be a professional prop trader from a beach in Tahiti? When can we do all of this from our smartphones?
  • Question from Big Bob - Is there open source software in the finance industry?
  • Question from Sarah R. - Can you explain what a matching engine is and how it works?
  • Question from Leo10 - Who was your favorite guest from 2015?
  • Question from Jim B. - What is the optimal tech set up for the aspiring active retail trader?

Trading Tech Talk 43: The Biggest, Craziest, and Most-Hated Tech Stories of 2015

Hot Topics in Tech: Top Tech Trends and Developments of 2015 Blockchain revolutionizing the back office HFT is evil again HFT not as profitable as originally thought Exchanges spending money on tech startups Regulators are changing the...
Posted December 28th, 2015

Hot Topics in Tech: Top Tech Trends and Developments of 2015

  • Blockchain revolutionizing the back office
  • HFT is evil again
  • HFT not as profitable as originally thought
  • Exchanges spending money on tech startups
  • Regulators are changing the technology landscape
  • The auction tech impact
  • Favorite/Craziest Stories of 2015
  • Russian hackers stealing press releases from wire services
  • The August flash crash
  • Russia threatening to use HFT to crash the markets
  • NYSE outage
  • The leap second
  • Twitter trading algos/bots

Things We Do NOT Want to Talk About in 2016

  • Spoofing
  • HFT is evil
  • Dark pool tech
  • More possible options exchanges

Trading Tech Talk 42: HFT Crackdown

Hot Topics in Tech: A quick rundown of the Options Alliance Event & Financial Startup Showcase from Dec 10, 2015. CFTC cracks down on HFT - New rules open to public comment. New study: Robotic trading is killing Wall Street jobs. Blockchain for...
Posted December 18th, 2015

Hot Topics in Tech: A quick rundown of the Options Alliance Event & Financial
Startup Showcase from Dec 10, 2015. CFTC cracks down on HFT - New rules open to public comment. New study: Robotic trading is killing Wall Street jobs.
Blockchain for banks still at the "gluten" stage.

The Inbox: Listener questions and comments

  • Question from JVSchultz - FinTech was all the rage in 2015. What are you top upcoming trends for 2016 in Trading Tech?
  • Question from Ntander - You have commented many times on the inability of the current regulators to keep up with the exploding technology in the financial markets. Do you think there is support for a dedicated technology regulator separate from the SEC and CFTC? This body would solely focus on the technology aspects of the markets and leave the regular market regulation to their counterparts. Thoughts?
  • Comment from Karrigan - Ever thought of special episodes that focus on different segments of the market. Maybe an Ags Tech episode, a Metals Tech episode, etc.

Trading Tech Talk 41: Are There Budgets for Trading Technology?

Hot Topics in Tech: ICE agrees to acquire BGC Trayport for $650 million. NYSE goes from fan to critic of IEX, criticizing "unfair" plan. Derivatives exchanges see use for blockchain technology. High-speed firms add new perspective to treasury advisory...
Posted November 24th, 2015

Hot Topics in Tech: ICE agrees to acquire BGC Trayport for $650 million. NYSE goes from fan to critic of IEX, criticizing "unfair" plan. Derivatives exchanges see use for blockchain technology.
High-speed firms add new perspective to treasury advisory group - KCG Holdings Inc. and Virtu Financial Inc.

The Inbox: Listener questions and comments

  • Comment from Aman117 - Ever thought about hosting a cyber security roundtable on the show with exchange, broker and trading firm CTOs? Talk about who is hacking them and what they?re doing to stop it? Could be interesting.
  • Question from Amanda F - Looks like budgets for #tradingtech are dwindling with much of that money going toward comp and reg. Any bright spots on the horizon that the tech spend may be increasing or is regulation going to continue to rule the day.
  • Question from JVZ16 - What do you think it will take to get stock and options exchanges to adopt the speed bump that you advocated on the last episode? A catastrophic error or failure of an HFT firm that causes massive losses and negative publicity?
  • Question from Big Rig - Love the program. You and henry breaking stuff down every month makes my long hauls a little shorter. So thanks for that. I have heard you guys discuss the problem of the lack of new market makers in the biz. Can technology not replace some of that? We have already got robo-advisors. Do you foresee the day of the robo-market makers anytime soon?
  • Question from Cookie -What is the best online platform for stock options and futures options?

Trading Tech Talk 40: Shadows Loom over Quants and Algos

Hot Topics in Tech: U.S. trader found guilty in landmark "spoofing" case. U.S. regulator signals bid to curb high-speed trading. Exchanges face pressure to disclose high-speed trader perks. CME experiments with real-time margin payments, unveiled a...
Posted November 16th, 2015

Hot Topics in Tech: U.S. trader found guilty in landmark "spoofing" case. U.S. regulator signals bid to curb high-speed trading. Exchanges face pressure to disclose high-speed trader perks. CME experiments with real-time margin payments, unveiled a deal with Dwolla. CBOE expands EMS connectivity between traders and workstations. Orc Group merges with CameronTec to jointly foster trading solutions.

The Inbox: Listener questions and comments

  • Question from Angelo Myers - Loved the deep dive into FPGAs last episode. I am a hardware wonk. What other hardware developments do you feel have been crucial to the trading landscape? Options or just general financial?
  • Question from JimWow -Hello team! Can you please explain what a complex order book is and how it works?
  • Question from Bill Williams - Lots of talk about putting a speed bump into the market to stop or slow down HFT jerks. Thoughts? Will it work or will the Cybermen just figure out a way around it?

Trading Tech Talk 39: Russian Hackers on the Rampage Again

Hot Topics in Tech: Russian hackers of Dow Jones said to have sought trading tips. High speed trading becomes US election issue. Regulators bring "spoofing" charges against a Chicago firm. UK start-up claims blockchain breakthrough in payment...
Posted October 26th, 2015

Hot Topics in Tech: Russian hackers of Dow Jones said to have sought trading tips. High speed trading becomes US election issue. Regulators bring "spoofing" charges against a Chicago firm. UK start-up claims blockchain breakthrough in payment processing. Nasdaq eyes dark-pool surveillance market."Flash Boys" heroes ask for stock exchange status.

The Inbox: Listener questions and comments

  • Question from TCity - What is the status of the regulatory proposal to register Algo developers? Do you feel this has a good chance of being passed?
  • Question from Tom M., Boca Raton, FL - Can you guys please discuss the net neutrality debate on your program and its possible ramifications in the trading world? Thank you for your excellent program even if much of it goes over my head.
  • Question from A. Butler - Hello mark and team. I would like to submit a discussion topic for the trading tech talk program. Can you please discuss the benefits and drawbacks of AWS when it comes to financial services? It seems like AWS has become the backbone of many other industries but does not seem to get much mention in the trading space. Is this simply due to the somewhat slow adoption of cloud infrastructure in the financial markets?

Trading Tech Talk 38: Pushing the Limits of Market Data

CTO Interview: The guest today is Mike Dunne, CTO at Activ Financial Systems, Inc. He discusses: An overview of your background in the derivatives markets What is Activ Financial Systems Inc.? Who is their typical end user? Scale, Market Data...
Posted October 16th, 2015

CTO Interview: The guest today is Mike Dunne, CTO at Activ Financial Systems, Inc.

He discusses:

  • An overview of your background in the derivatives markets
  • What is Activ Financial Systems Inc.?
  • Who is their typical end user?
  • Scale, Market Data and FPGA
  • Going live with Nasdaq Basic.

Hot Topics in Tech: Java at 20 - its 6th major version was released this year. Goggle + Symphony? - Goldman Sachs-backed Symphony raised $100 million in new funding on Monday from search giant Google and others.

The Inbox: Listener questions and comments

  • Question from Averyflynn - Tech Team - How about a show about margin tech and margin risk tech? Seems like a hot segment of the industry.

Trading Tech Talk 37: The Bleeding Edge of the Options Market

CTO Interview: The guest today is Robert D'Arco, CEO, Rival Systems. He discusses: An overview of your background in the derivatives markets. What is Rival Systems? Who is the target end-user? The Rival Risk Analytics Suite. Hot Topics in...
Posted September 30th, 2015

CTO Interview: The guest today is Robert D'Arco, CEO, Rival Systems.

He discusses:

  • An overview of your background in the derivatives markets.
  • What is Rival Systems?
  • Who is the target end-user?
  • The Rival Risk Analytics Suite.

Hot Topics in Tech: What?s happening in the world of fin tech?

  • Technology groups warned on stricter financial regulation - The chairman of HSBC has said that regulators in China and elsewhere are starting to consider more seriously whether technology companies that provide financial services should, like banks, be regulated more heavily.
  • Blockchain initiative called R3 backed by 9 large investment banks - Nine of the largest investment banks, including Goldman Sachs, JPMorgan and Credit Suisse, are planning to develop common standards for blockchain technology in an effort to broaden its use across financial services.
  • Bloomberg and Twitter sign data licensing agreement - The long-term data agreement with Twitter will further enhance financially relevant information found on the social media platform for users of the Bloomberg Professional service.

The Inbox: Listener questions and comments

  • Question from TomTom08 -Hello TT crew, love the show. Hope you grin back the Lightning Round soon. I would like you guys to comment on OpenFin (https://openfin.co/) and how it can extend the capability of HTML5 for FinTec providers.

Trading Tech Talk 36: Patent, Messaging and Spoofing Wars Heat Up

Hot Topics in Tech: Investors Lose in Today's Markets, Says Former NYSE Head Grasso. NYSE Draws Users' Ire with Fee Increases, Patent Charge Proposal. Mini flash crash? Trading anomalies on manic Monday hit small investors. Algorithmic Trading:...
Posted September 18th, 2015

Hot Topics in Tech:

  • Investors Lose in Today's Markets, Says Former NYSE Head Grasso.
  • NYSE Draws Users' Ire with Fee Increases, Patent Charge Proposal.
  • Mini flash crash? Trading anomalies on manic Monday hit small investors.
  • Algorithmic Trading: The Play-at-Home Version
  • International HFT Backlash: China targets high-frequency traders in "spoofing" probe
  • Symphony is just the latest attack on Bloomberg's fortress
  • 3Red set for "spoofing" legal battle

The Inbox: Listener questions and comments

  • Question from GG: Has there ever been talk of some sort of technology glitch or shutdown futures? In the wake of the NYSE problems it seems there would be a fertile market for such a product. Firms could hedge themselves against system risk. Please discuss.
  • Question from Cybortrader: when the race to zero winds down to its inevitable conclusion what do you think will be the next big battle ground for HFTs? CPU/GPU cycles? Co-location proximity? Where will the war rage next? Thank you for your thoughts. I very much enjoyed the episode with Thomas Peterfy of interactive brokers.

Trading Tech Talk 35: In the Wake of the Market Meltdown

Hot Topics in Tech: A Massive Selloff. Interesting data and tech insights from the recent pronounced selloff in the market. "Here's the advantage high-frequency trading firms have over everyone else," says Eric Hunsader, founder of Nanex LLC, the U.S....
Posted September 1st, 2015

Hot Topics in Tech: A Massive Selloff. Interesting data and tech insights from the recent pronounced selloff in the market. "Here's the advantage high-frequency trading firms have over everyone else," says Eric Hunsader, founder of Nanex LLC, the U.S. financial markets consultancy. BATS gets regulatory nod for second U.S. options exchange. BATS files client suspension rule to expedite action again HFT spoofers.

The Inbox: Listener questions and comments

  • Question from Dariush - Question for trading tech talk radio program. Hello mark. I heard on one of your recent programs that there were system issues preventing OPRA and other platforms from adopting the VIX weekly futures and upcoming options. Do you have any insight into why these specific products would cause issues for technology vendors and platforms? Thank you for your time.

Trading Tech Talk 34: Complex Order Tech and Insider Trading Via Hackers

CTO Interview: Today we are joined by Michael Barry, CEO & Founder of EESAT. He discusses: An overview of his background in the markets and how he started EESAT Who came up with the idea to put Burt Reynolds on the website? Listener question...
Posted August 20th, 2015

CTO Interview: Today we are joined by Michael Barry, CEO & Founder of EESAT.

He discusses:

  • An overview of his background in the markets and how he started EESAT
  • Who came up with the idea to put Burt Reynolds on the website?
  • Listener question from Leonard Garcia - Can you explain what a complex order book is? Thanks and love the show.
  • 35-40% of daily contract volume in non-index is spread- 70% on ISE!
  • How does EESAT reconcile the varying functionality of the different order books at the different exchanges?
  • Who is the ideal end user of EESAT products?
  • How do we solve the problem of spread execution across complex order books?
  • Where can listeners go if they want to learn more about EESAT?

Hot Topics in Tech: Ukrainian cyber-criminals hacked newswires to steal company data and raked in millions of dollars.


Trading Tech Talk 33: Flash Crashes, Dark Pools and HFT Drone Wars

Hot Topics in Tech: What do you need to know about financial technology? A technical glitch postponed the start of trading in futures and options contracts on Eurex by more than two hours, the latest in a run of breakdowns by exchanges. Exchanges...
Posted August 5th, 2015

Hot Topics in Tech: What do you need to know about financial technology?

  • A technical glitch postponed the start of trading in futures and options contracts on Eurex by more than two hours, the latest in a run of breakdowns by exchanges.
  • Exchanges around the world are avidly wooing high-frequency traders, those controversial speed demons of Wall Street. Despite the often explosive debate over this kind of trading in the U.S., bourses in Mexico, Turkey, South Africa and beyond are trying to lure HFT types to boost business.
  • China, perhaps the last big obstacle to high-frequency trading achieving global dominance, where tight government rules, a stamp duty on stock trades and market inefficiency have so far kept out the algobots. High frequency share trading, which favors ?predatory strategies that queue jump institutional and retail investors?, is having a toxic effect on Australia financial markets, according to researchers at the Business School.
  • NY AG preps case against Credit Suisse dark pool - New York Attorney General Eric Schneiderman is preparing a civil case against Credit Suisse AG (CS).
  • CMEs power of electronic trading let it acquire Nymex: The importance of technology was demonstrated again when CME saved Nymex from disappearing.
  • A new report by regulators admits that there was an unusual amount of "self-trading" leading up to the October 15 bond market flash crash. The Treasury market, officially, had its own flash crash.

The Inbox: Listener questions and comments

  • Question from GG: Has there ever been talk of some sort of technology glitch or shutdown futures? In the wake of the NYSE problems it seems there would be a fertile market for such a product. Firms could hedge themselves against system risk. Please discuss.
  • Question from Eli Minn: Good discussion of the NYSE meltdown. I came away from it agreeing that tech actually saved the day. I guess fragmentation is good for something after all.
  • Question from TJD: I know you guys were joking when you talked about HFT boats and blimps. But has there been any serious application of drone tech in the trading world? I have seen them used for combat, photography, movie-making, science experiments and more. Why not trading?

Trading Tech Talk 32: The Hack vs. Glitch Debate

Hot Topics in Tech: NYSE glitch: what happened? A Lesson from the NYSE Outage: Fragmentation Works. Leap second was not a mini Y2K, but more of a tempest in a teapot. No major outages or calamities as a result of the leap second. Derivatives market...
Posted July 17th, 2015

Hot Topics in Tech: NYSE glitch: what happened? A Lesson from the NYSE Outage: Fragmentation Works. Leap second was not a mini Y2K, but more of a tempest in a teapot. No major outages or calamities as a result of the leap second. Derivatives market concerned by trade reporting costs. A Bitcoin technology gets NASDAQ test.

The Inbox: Listener questions and comments.

  • Question from SemperFi: Do you guys think it was really a hack that brought down NYSE? NYSE, WSJ, United and Reddit? Seems fishy to me.
  • Comment from Technation: I very much enjoyed your interview with the CEO of IB. It was a far reaching conversation that covered many topics. It is interesting to see early pioneers in computer trading now pushing back against the modern iteration. I suppose there's a certain amount of karma at work there. I also found his final comment that he supports new startups not by investment but by providing discounts to his own services to be very revealing. I'm already looking forward to your next episode.
  • Question from Nikolai: Why do you think so few outside investment funds and venture funds invest in trading-related startups?

Trading Tech Talk 31: Talking Options Algos with Convergex

CTO Interview SegmentToday's guest is Ben Londergan, Executive Managing Director, Options Trading and Technology at Convergex.He discusses: Algos: The growing suite of options algos under development at Convergex including Sweep, Capital...
Posted July 1st, 2015

CTO Interview Segment
Today's guest is Ben Londergan, Executive Managing Director, Options Trading and Technology at Convergex.He discusses:

  • Algos: The growing suite of options algos under development at Convergex including Sweep, Capital Commitment, Buywrite, Delta Neutral and much more.
  • Reg SCI: Why is it so important and what impact will it have on the trading technology landscape.
  • Floor vs. Tech: Bringing floor-based tech to the upstairs trading crowd. In this world of sub-second executions what value does he see the trading floor bringing to the table?
  • And much more.

Hot Topics in Tech

  • Mini Y2K - Traders anxious ahead of extra second in day.
  • Complex US options market hampers liquidity - report

Lightning Round

  • What sector has more billionaires - finance or tech?
  • Is the race to zero over?

The Inbox: Listener questions and comments

  • Question from Alan Park - Why is open interest not calculated instantly? If I buy 10 puts to close, why is that not automatically reflected in the open interest displayed by the exchanges? Is it not outdated to update such an important metric only once a day?

  • Question from Elly Sanders - We have dark pools in stocks. They do most of the volume on some days. Why do we not have them in options? Will that ever change?

Trading Tech Talk 30: Talking HFT, Tech and Probability With Thomas Peterffy

CTO Interview: Mark and Henry are joined by Thomas Peterffy, Founder, CEO and Chairman of Interactive Brokers. They discuss: The HFT Sector The impact of the HFT sector on the marketplace Thomas' proposal for introducing a random amount of...
Posted June 5th, 2015

CTO Interview: Mark and Henry are joined by Thomas Peterffy, Founder, CEO and Chairman of Interactive Brokers.

They discuss:

  • The HFT Sector
  • The impact of the HFT sector on the marketplace
  • Thomas' proposal for introducing a random amount of latency into the system
  • Robotic typing and the benefit of leveling the playing field
  • Mid-day auctions
  • Static versus random delays
  • Should developers become registered representatives?
  • Exchange fragmentation
  • Being against HFT vs. being for payment for order flow
  • Is there a technological solution to the problems associated with spread books vis a vis market fragmentation?
  • The flight of liquidity providers
  • The Probability Lab
  • Tools for advisors, and what Interactive Brokers is doing for that audience
  • The Covestor acquisition

Trading Tech Talk 29: Cheaper Data: Do You Get What You Pay For?

In this episode, Mark and Henry are joined live at the Options Industry Conference by Rob Brogan from FlexTrade. CTO Interview: Today's guest is Rob Brogan, Vice President of Options Sales at FlexTrade. They discuss: What is...
Posted May 27th, 2015

In this episode, Mark and Henry are joined live at the Options Industry Conference by Rob Brogan from FlexTrade.

CTO Interview: Today's guest is Rob Brogan, Vice President of Options Sales at FlexTrade. They discuss:

  • What is FlexTrade?
  • FlexTrade's work with CBOE
  • What's new at FlexTrade?
  • Smart routing, algos, and more
  • Complex order books

Hot Topics in Tech: The jury weighs in on the guy who stole HFT code from Goldman Sachs. Stealing code. TWTR accidentally releases earnings via Tweet and the speed of information is on display. Hunting down people Tweeting proprietary content.

The Inbox: Listener questions and comments, including cheaper data, a la carte options, and more.


Trading Tech Talk 28: Flash Crash Finger Pointing

Hot Topics in Tech: Today's guest is Mark Haraburda, Managing Director at Barchart who gives an overview of Chicago FinTech Exchange 2015. Overheard @FinTechChicago: "Latency will be a historical market structure discussion." - Let's hope they're...
Posted May 6th, 2015

Hot Topics in Tech: Today's guest is Mark Haraburda, Managing Director at Barchart who gives an overview of Chicago FinTech Exchange 2015.

  • Overheard @FinTechChicago: "Latency will be a historical market structure discussion." - Let's hope they're right!
  • IBM Watson may be a little scary to some participants.
  • Cloud is also scary for many firms.
  • Plans for the future

Also of discussion today is:

  • "Flash Crash" arrest lays bare regulatory lapses at all levels.
  • Goldman Sachs makes $20m investment in HFT tech provider.
  • Russell become the latest to unveil digital tools for advisors.
  • SunGard to explore possible $10 billion sale says sources.

The Inbox: Listener questions and comments

  • Question from Charles S. - What software is the most popular these days with proprietary options trading shops? Is there one that dominates the landscape?
  • Question from Adam - Hello, I am a big fan, thank you for your great shows. I have been looking for a platform that I use for Backtesting. I currently use thinkorswim but Backtesting is slow and not reliable. Any suggestions? Thanks, AdamVega
  • Question from Nikolai - Why do you think so few outside investment funds and venture funds invest in trading-related startups?

Trading Tech Talk 27: Attack of the Rogue Twitter Algos

Hot Topics in Tech: How did Bloomberg fix its terminal outage? Virtu or vice? Fund managers face dilemma over speed-trading IPO. Parasite turns on parasite: HFT sues other HFTs for "egregious manipulation" of treasury securities. DE Shaw, Citadel urge...
Posted April 28th, 2015

Hot Topics in Tech: How did Bloomberg fix its terminal outage? Virtu or vice? Fund managers face dilemma over speed-trading IPO. Parasite turns on parasite: HFT sues other HFTs for "egregious manipulation" of treasury securities. DE Shaw, Citadel urge CFTC to allow anonymous swaps trades.

The Inbox: Listener questions and comments

  • Question from Andrew Hale - How about a segment where you guys review trading apps? I would certainly tune into that.
  • Comment from Joe Riggs - Love the story about the armada of HFT battleships from the last episode. I have heard some crazy things about HFT over the past year, but this is definitely the craziest. Can you imagine all the big players launching ships to try to claim the waters near the midpoint of the exchanges? My mind keeps going back to the old Barbary pirates - this is the modern day version. I think international fleets would be assembled to disperse this modern day threat to market integrity. Amazing! Sounds like the starting point for a great novel. Trouble is no one would believe it.

Trading Tech Talk 26: Talking Algo Design and Technical Analysis

CTO Interview: Today's guest is Vlad Karpel, Former CTO of OptionsXpress and Founder of TradeSpoon. He discusses: An overview of his background in the options market. TradeSpoon: what is it? What makes it unique? The TradeSpoon trade...
Posted April 1st, 2015

CTO Interview: Today's guest is Vlad Karpel, Former CTO of OptionsXpress and Founder of TradeSpoon.

He discusses:

  • An overview of his background in the options market.
  • TradeSpoon: what is it? What makes it unique?
  • The TradeSpoon trade recommendation algorithm.
  • Some of the offerings from TradeSpoon, including: Trade Idea Tool, Options Toolbox, Momentum Scanner, Unusual Options Scanner, Size Scanner, Total Value Scanner, and Tradespoon Scoop.

Hot Topics in Tech: Not much love for financial firms in the survey of recent Engineering and CS graduates. Only three financial firms - Goldman, JP Morgan and Morgan Stanley in the top 50. Investment in financial technology groups triples to $12bn in year

The Inbox: Listener questions and comments

An overview of tools for technology analysis for retail customers


Trading Tech Talk 25: Beware the HFT Armada

Hot Topics in Tech: OCC to consider tech overhaul. Virtu hopes time can heal HFT furor. Study by CFTC official questions legality of HFT practice. City of London "black book" is called for to track "bad apple" traders. Physicist says it is possible to...
Posted March 26th, 2015

Hot Topics in Tech: OCC to consider tech overhaul. Virtu hopes time can heal HFT furor. Study by CFTC official questions legality of HFT practice. City of London "black book" is called for to track "bad apple" traders. Physicist says it is possible to use ships to facilitate high-frequency trading.

The Inbox: Listener questions and comments

  • Question from Anthony J. - Hello Mark and Henry. I very much enjoy the program and your insight into this marketplace. I have a question about options data. You have mentioned on other programs an explosion of data and messaging. People always talk about a ceiling for exchanges. But I have to wonder if we are approaching some sort of theoretical limit on how many options series can be listed. Every new issue has hundreds or even thousands of strikes with both calls and puts. That is a tremendous burden for any platform to update in a real time basis with every tick of the stock. At what point do traders simply throw up their hands and say "no mas."
  • Comment from Mark Brant - Thanks Henry + Mark for info about "shows", and thank 4 the free flow data on TOI.com and The Top Ten from Trade Alert. Why would the Russians do something so stupid? Their economy is shot already, cyber terror would pulverize it!
  • Question from Vargo - The derivatives markets pose a number of significant challenges from a technology standpoint. There has been a tremendous expenditure to create systems to model so many disparate classes and update them with every tick of the underlying. Have we we seen any spillover of this amazing technology to other industries or areas?
  • Question from Shadowbox - Is it feasible to use GPS to increase the timing accuracy of data stored by firms and provided to regulators? Or is GPS not fast or accurate enough to meet the new 50ms standard proposed by Finra?

Trading Tech Talk 24: HFT Spies and UX Crimes

Hot Topics in Tech: Could Russia use high-frequency trading to crash the markets? NYSE rolls out auctions, and upgrades its technology guts. CFTC commissioner attacks swaps regulation and proposes alternative agenda. Watchdogs home in on financial...
Posted February 18th, 2015

Hot Topics in Tech: Could Russia use high-frequency trading to crash the markets? NYSE rolls out auctions, and upgrades its technology guts. CFTC commissioner attacks swaps regulation and proposes alternative agenda. Watchdogs home in on financial technology. Casualties mount in high-speed trading arms race. Brokers, synchronize your watches - Regulators want the industry to improve their server-clock synchronizations so they can build the Consolidated Audit Trail.;

The Inbox: Listener questions and comments

  • Question from Cortez - I like the discussion about Fintech UX on the last show. What would you say is the greatest UX crime committed by Fintech companies?
  • Question from Orgo Tea - At what point does the number of listed options exchanges simply become too much of a burden for customers and clients to endure?
  • Reply from Mark Brandt (in reply to "Please explain how options block trades are executed and how to transition to block trading from retail work. Thx!") - Thanks for the great answer about block trading, but by "work" I meant my efforts to get block trades, not a job!

Trading Tech Talk 23: Lighting Up the Dark Options Markets

CTO Interview: Today's guest is Joseph Wesley, Founder & CEO of Vesel Interactive. He discusses: An overview of his background in the derivatives market? What is Vesel? Who is Vesel's end user? How many firms are using the Vesel system...
Posted January 31st, 2015

CTO Interview: Today's guest is Joseph Wesley, Founder & CEO of Vesel Interactive.

He discusses:

  • An overview of his background in the derivatives market?
  • What is Vesel?
  • Who is Vesel's end user?
  • How many firms are using the Vesel system right now?
  • How does Vesel generate your derivatives volume reports?
  • Why do firms share their data with Vesel?
  • What safeguards are there against firms under/over-reporting their volume or marketshare?
  • An overview of VolAxe?
  • How easy is it for clients to build their own hook into the system using the API?
  • How does this offering compare with what the guys at EQ derivatives are offering?
  • Teases of upcoming Vesel developments

Listener Mail: Listener questions and comments

  • Question from Avalone - What is the take on coinbase. Seems to be making a lot of headlines. Exchange went live this morning. Any takers out there for these bitcoin things?
  • Question from VTech - Are there specific GUI challenges for options front ends vs. equities? I know that options have more series than equites. Does that translate into any unique needs for those products vs. standard cash equities? I am studying UX at school with the hopes of breaking into the financial realm after graduation, perhaps on the derivatives software side.
  • Question from Mark Brant - @Options Please explain how options block trades are executed and how to transition to block trading from retail work. Thanks!

Trading Tech Talk 22: The Obvious Error Battle

Hot Topics in Tech: SEC plans to fix data release flaw in Q1 2015. SEC pokes hole in argument it is too slow to get grip on markets. Nobel laureate Stiglitz blocked from SEC panel after faulting high-speed traders. Finally progress on obvious error...
Posted January 28th, 2015

Hot Topics in Tech: SEC plans to fix data release flaw in Q1 2015. SEC pokes hole in argument it is too slow to get grip on markets. Nobel laureate Stiglitz blocked from SEC panel after faulting high-speed traders. Finally progress on obvious error rules: BATS obvious error filing. Big fund managers form new dark pool equity trading venue. Cyber Security: JP Morgan and Target attack. CME Group fines three firms for automated trading violations. Dark Pools Detente: ICE has unlikely ally on trading proposal.

The Inbox: Listener Questions and Comments

  • Question from Andy Charles - You guys were pretty dismissive of Robin Hood on the last show. Do you feel that is because you are not really the target market - you are not 23 with $200 to your name? Are you giving it a fair shake?
  • Question from Tim C - NYSE invests $75M in Coinbase. Nadex lists Bitcoin binaries. Tera Exchange lists Bitcoin derivatives. Is it time to accept that Bitcoin is here to stay?

Trading Tech Talk 21: The Best and Worst of 2014

Trading Tech Talk 21: The Best and Worst of 2014 The Best/Worst of 2014: Best - Increased willingness to discuss cyber security in the financial markets. Worst - Post-Flash Boys backlash. Worst - Growing stranglehold of regulation, regardless of...
Posted December 29th, 2014

Trading Tech Talk 21: The Best and Worst of 2014

The Best/Worst of 2014:

  • Best - Increased willingness to discuss cyber security in the financial markets.
  • Worst - Post-Flash Boys backlash.
  • Worst - Growing stranglehold of regulation, regardless of cost, impact or unintended consequences.
  • Worst - Continued reduction in tech budgets in 2014.
  • Worst (Best?) - FINRA tightening the leash on algo regulation.
  • Best - Detente on patent disputes in the financial markets.
  • Worst (Best?) - Death of Darkpools?
  • Worst - Continued explosion of options exchanges.
  • Worst - Technology outpacing regulators.
  • What can we look forward to in 2015?

Trading Tech Talk 20: Real-Time Risk and Margin in the Cloud

Trading Tech Talk 20: Real-Time Risk and Margin in the Cloud CTO Interview: Today's guest is Robert Newhouse, CEO, Victor Technologies. He gives an overview of his background in the derivatives markets, and what he does at Victor Technologies....
Posted December 2nd, 2014

Trading Tech Talk 20: Real-Time Risk and Margin in the Cloud

CTO Interview: Today's guest is Robert Newhouse, CEO, Victor Technologies. He gives an overview of his background in the derivatives markets, and what he does at Victor Technologies. Enhanced analytics, Difference vs. Hanwick, GPU acceleration, and DJALI application.

Hot Topics in Tech: Cyber risk is a top concern, 84% tell DTCC. Financial technology sector complains of lack of bank services.

The Inbox: Listener questions and comments

  • Question from Analagus: bit of a thought question for the TTT hosts. Who has an easier road to profit - an algo inclined trader who does not know how to program vs. a programmer who wants to trade?
  • Question from George B., Los Angeles: My question is for Trading Tech Talk. I skipped FIA Chicago this year because I could not fit it into my schedule. But it's always a good show to get a read on the trends in tech for the coming year. The exhibit hall is one of the biggest I have ever seen. I know Mark probably attended since he's local, and perhaps the other hosts as well. Just curious if you could give a rundown for those of us who missed it as to the major tech themes coming out of the event.
  • Question from Objectivist C: For all tech-related spends at firms has always been build v. buy. Seems like the answer typically fell on the build side if you wanted a competitive edge and to utilize proprietary systems or strategies. But with budgets being stretched much farther these days and upgrade cycles being extended do you foresee this trend shifting toward buy in the future? Particularly as popular trends like cloud adoption democratize access to powerful systems?

Trading Tech Talk 19: Can Crazy Math Save the Exchanges?

Trading Tech Talk 19: Can Crazy Math Save the Exchanges? Hot Topics in Tech: Fresh SEC crackdown on "flash crashes." Final approval of Reg SCI. "CFTC is so underfunded that it cannot evolve to handle Bitcoin and modern electronic markets," says...
Posted November 28th, 2014

Trading Tech Talk 19: Can Crazy Math Save the Exchanges?

Hot Topics in Tech: Fresh SEC crackdown on "flash crashes." Final approval of Reg SCI. "CFTC is so underfunded that it cannot evolve to handle Bitcoin and modern electronic markets," says Chairman Massad. Formal verification for trading algorithms to improve exchange reliability?Are we in a fintech bubble?

The Inbox: Listener questions and comments

  • Question from Neal Dorman - Saw a stat yesterday that an alarming number of millenials do not see the need for a bank. What does that mean for Fintech startups as well as support for this sector going forward? Is this the new buggy whip?
  • Question from Avo - Can you discuss the complex order books at the options exchanges and how they function?In particular how they do not talk to each other or route orders away to other books? Are there any changes or developments in the works to fix this? Thanks for the show.
  • Question from Dataman - Hola Tech team! I work ing cloud infrastructure for a big hosting company many of your listener are probably familiar with. I enjoy the show but I have to wonder if there just too many obstacles for mainstream tech like the buzz-heavy cloud to ever be fully embraced by financial services companies. Finance firms are not retail merchants or widget makers. They have severe restriction on their technology and their compliance. May I am a cynic, but I do not know if I ever see those obstacles being overcome. At least not translating into a "cloud" that is similar to what is available in other industries.

Trading Tech Talk 18: Spoofing Dark Pools

Trading Tech Talk 18: Spoofing Dark Pools Hot Topics in Tech: Barclay's dark pool trading rises 23% as bank recovers from lawsuit. Dark pools pitched as havens are anything but, T. Rowe says. NYSE pulls reg back from FINRA, leans on tech. Spoofing -...
Posted November 19th, 2014

Trading Tech Talk 18: Spoofing Dark Pools

Hot Topics in Tech: Barclay's dark pool trading rises 23% as bank recovers from lawsuit. Dark pools pitched as havens are anything but, T. Rowe says. NYSE pulls reg back from FINRA, leans on tech. Spoofing - everything old is new again - High-speed trader accused of commodity market "spoofing". High-frequency firm said to be finalist to run Nasdaq Price Feed. Expand automated trading safeguards to include brokerages, SEC members say. CME cuts tech jobs. Sungard cautions on "fintech" valuations

The Inbox: Listener questions and comments

Question from Sal Warren: Love the tech program. Great addition to the network. I'd like to know what impact the growing incubator and startup scenes in NYC and Chicago will have on fintech going forward. Do you expect to see the next big innovations on the scene coming from entrepreneurs rather than established players like exchanges or vendors? Last up - does trade alert offer API access if i want to include their data in my models?


Trading Tech Talk 17: What Exactly is Best Ex?

Trading Tech Talk 17: What Exactly is Best Ex? Hot Topics in Tech: OCC and the U.S. Options Exchanges announce new risk control standards to strengthen industry projections. FINRA approved a series of new rule changes focused on high-frequency...
Posted November 12th, 2014

Trading Tech Talk 17: What Exactly is Best Ex?

Hot Topics in Tech: OCC and the U.S. Options Exchanges announce new risk control standards to strengthen industry projections. FINRA approved a series of new rule changes focused on high-frequency trading and algorithmic trading. BABA IPO goes fairly smoothly. Chicago Stock Exchange turns to tech to save itself. Robin Hood app. Yet another attempt at zero commission stock trading. Just what the hell is "Best Ex"? Tabb Group jumps into best ex fray with clarity.

The Inbox: Listener questions and comments.

  • Question from Astro429: what do you think is the biggest obstacle to microwave adoption in the U.S. financial community?
  • Question from Silas J.- this question is for the trading tech talk radio program. Hi Mark, Henry et al - great show. I'm hearing a lot of talk about enhanced data feeds coming from vendors and exchanges. You touched on this way back in episode 3. I would like to know if the landscape has changed and if you?re seeing more players enter this space? Is this the future? Am I going to be able to run sophisticated algos on my phone soon because all the computational work is being done in the cloud and pushed to me? Personally I think that would be pretty cool. Also can you guys do a show on getting started as a quant or developer in the fintech space? Thanks.

Trading Tech Talk 16: Upgrade Dilemmas and Open Source Surprises

Trading Tech Talk 16: Upgrade Dilemmas and Open Source Surprises Hot Topics in Tech: ICE conquest continues with SuperDerivatives acquisition. Wall Street firms push back against Bloomberg's dominance in instant messaging. Dark pool volume not...
Posted September 25th, 2014

Trading Tech Talk 16: Upgrade Dilemmas and Open Source Surprises

Hot Topics in Tech: ICE conquest continues with SuperDerivatives acquisition. Wall Street firms push back against Bloomberg's dominance in instant messaging. Dark pool volume not impacted by bad press, regulatory fines & pending litigation. ParFX trials high-speed market makers on their trading platform. Doubts raised over global forex platform. Korea reveals derivatives safety measures. No rush to upgrade OMSs among sell-side firms. TABB Group jumps into best ex fray with clarity.

The Inbox: Listener questions and comments

  • Question from Jerry - I was surprised to learn recently that Goldman Sachs is using open source software for many of their trading systems? Do you guys find that as surprising as I do particularly in the wake of Flash Boys?
  • Question from Simtech - Most tech startups talk about getting to a minimum viable product. Can startups and firms in the financial technology space even do that, given all of the regulatory and compliance hurdles in place? They essentially have to launch with a finished products that is ready to go. Does that place an unfair burden on startups in the financial space?

Trading Tech Talk 15: Virtual Machines Vs. Bare Metal

Trading Tech Talk 15: Virtual Machines Vs. Bare Metal Hot Topics in Tech: MMI gets Chilton as an adviser to an industry group for high-speed traders less than six months after stepping down as a US regulator. Glitch Season Returns - Nasdaq breakdown...
Posted August 29th, 2014

Trading Tech Talk 15: Virtual Machines Vs. Bare Metal

Hot Topics in Tech: MMI gets Chilton as an adviser to an industry group for high-speed traders less than six months after stepping down as a US regulator. Glitch Season Returns - Nasdaq breakdown causes "stuck" orders. CME futures trade resumes after technical glitch - trade begins about four hours late. Big Data - Improving research an going visual.

Data visualization demand spikes. TD Ameritrade dispute turns spotlight on US patent legislation. Citi pays $5m to settle SEC data charges. Greifeld warns on "perverted" dark pools - Legitmare point or exchange executive slamming the competition

The Inbox: Listener questions and comments

  • Question from Joe Mein: I'm writing with a question for options tech talk. Can the hosts relate their experiences with AWS - particularly EC2 - when it comes to using their virtual CPUS to backtest models for options trading. Is this an efficient way to extend our capability without making a large hardware investment or is there too much latency to be of much use. I've heard mixed things about Amazon's virtual CPUS from some peers and hope this program can help settle the debate. Also if not AWS, are there alternatives you can recommend?
  • Question from Bosun: This one is for the tech heads on TTT. Great program. I'm an active retail trader and fan of the Option Block and Volatility Views. But Trading Tech Talk is growing on my radar as I'm starting to learn more about what's going on under the hood in the markets. That stuff is pretty scary but mark and the panel do a good job of setting us straight. It also makes me wonder what I can do to profit with this tech. I keep coming across services that claim to provide actionable trading data from social media. I know this is the hot trend right now so we're bound to see more of these in the coming months. I'd like to know if you guys buy into this trend or think it's just a fad. Any service recs would also be a plus.

Trading Tech Talk 14: End of the Race to Zero

Trading Tech Talk 14: End of the Race to Zero CTO Interview Segment: Today';s guest is Dan Sacks, CEO of Actant. He discusses: An overview of his background in the derivatives space. A background of Actant. Actant's key products and...
Posted August 21st, 2014

Trading Tech Talk 14: End of the Race to Zero

CTO Interview Segment: Today';s guest is Dan Sacks, CEO of Actant.

He discusses:

  • An overview of his background in the derivatives space.
  • A background of Actant.
  • Actant's key products and consumers
  • Free troubleshooting for your clients
  • How important is speed?
  • What is the use case for Actant's Extstream product?
  • What does Extstream offer that the legion of other risk/analytics platforms do not?
  • How he feels about changing fee schedules?
  • What was the genesis behind the recent deal with Liquidpoint?
  • What he thinks of the recent controversy over the Globex outage?
  • Have we reached the point where adding new venues is simply risk prohibitive at this point?

Hot Topics in Tech: ICE buys patents from Trade Technologies. What is sufficiently accurate to collect timestamps on multi-party electronic trading data? Is it seconds, milliseconds, microseconds, or nanoseconds? 'Flash Boys' and the Speed of Lies - By Brad Katsuyama

The Inbox: Listener questions and comments

  • Comment from Kaiserdog76: Mark- Kudos again for covering Barclay's and the HFT shakedown that has been going on. It is the biggest thing no one seems to be talking about. Please keep it coming!
  • Question from Anon. (withhold name): Loving the trading tech talk program. The episodes with Hull and Liquidpoint were great. I look forward to each new episode. I work for a vendor (which shall go unnamed) and i see a lot of these debates playing out every day. Quite frankly a lot of the firms that I deal with are fed up with shelling out every six months for new tech. They are overburdened by regulatory expenses that are siphoning off any remaining discretionary budgets and they are being forced to make do with the tech they already have. My question for the panel - do you think this will be the ultimate deciding factor in the financial technology space? Firms essentially saying "no mas" to increasing tech arms races, abandoning the already dated "race to zero" and instead focusing on new strats and products that take full advantage of their existing tech without a large additional capital outlay? Between you and me I'm already polishing my resume. So I guess that goes to show where I think things are heading. Love the show. I'll keep listening no matter how this thing shakes out. If you use this on the show please don't read my name.

Trading Tech Talk 13: Algo Hardware and High Speed Networks

Trading Tech Talk 13: Algo Hardware and High Speed Networks CTO Interview: Today's guest is James Spooner, VP of Trading Platforms at Maxeler Technologies. In this segment, he discusses: An overview of his background in the financial market, as...
Posted July 29th, 2014

Trading Tech Talk 13: Algo Hardware and High Speed Networks

CTO Interview: Today's guest is James Spooner, VP of Trading Platforms at Maxeler Technologies. In this segment, he discusses:

  • An overview of his background in the financial market, as well an overview of what he does at Maxeler Technologies.
  • If he has seen an increased demand for your products in the wake of Dodd/Frank?
  • How Maxeler Technologies will custom design hardware to meet the specifications of a customer's algorithm
  • His take on the recent criticisms regarding potential abuses of those networks raised by Michael Lewis and other authors?
  • What he thinks of the introduction of artificial delays in HFT networks in an attempt to stifle abuses?
  • If he thinks we are seeing growing concerns over a lack of synchronization in the financial markets, is this a concern for Maxeler as well?
  • What new products or developments can we expect from Maxeler in the coming months?

Hot Topics in Tech: Clients are fleeing Barclays "dark pool" in the wake of a US lawsuit alleging the bank misled them about high frequency activity in its private trading venue. Is there too much noise in social media and financial analytics? T+2 may lead to more failed trades.

The Inbox: Listener questions and comments

  • Question from Athlas: Seems like the front of the focus on HFT gaming in on the equity markets. I know you have discussed the penetration, or lack thereof, of this type of gaming into derivatives on earlier podcasts. My question is, why do you think this sort of gaming has not penetrated significantly into options and futures? Does the complexity of these instruments vs single price instruments, like stocks, make them less susceptible to latency issues and flickering quotes? Or is there something else at work here?
  • Question from Rance Barber: I am a long-time listener to all of the Options Insider Radio shows and often hear Mark quote trading volume statistics. Have you identified any aggregate, reliable source for stock market trading volume data? I am looking for the data by month (2003-present) and it needs to include both traditional public exchanges as well as dark pool trading volume information. Any advice you can provide as to where I could find this data would be much appreciated. Thanks, Rance.
  • Question from Guled - Hi! Which options software has the capability to automate the unusual options volume? E.g. with filters such as, on bid/ask, above/below open interest. Have found two professional grade LiveVol and Trade Alert, but do not know if they automate the process? Would be grateful for any help, many thanks in advance Thanks, Guled.

Trading Tech Talk 12: The Markets Are Out of Sync

Trading Tech Talk 12: The Markets Are Out of Sync Hot Topics in Tech: Regulators challenged by clock synchronization. Flash Boys continues to spur debate and some change, though the government will ultimately have to address the stock market's...
Posted July 23rd, 2014

Trading Tech Talk 12: The Markets Are Out of Sync

Hot Topics in Tech: Regulators challenged by clock synchronization. Flash Boys continues to spur debate and some change, though the government will ultimately have to address the stock market's structure. Thomas Peterffy, one of the founding fathers of high-frequency trading, has offered the SEC a plan to keep HFTs from taking advantage of investors. Warren Buffett, business partner Charlie Munger, and Bill Gates slammed HFT on CNBC. They are no fans of high-frequency trading. Both brokers and investors are testing new ways to cope with the sheer volume of data the stock market produces. Goldman Sachs fined in dark pool debacle. It's not just the U.S. - Bombay Stock Exchange halted by network glitch.

The Inbox: Listener Questions & Comments

  • Question from Hawkeye -Just wanted to share an observation. You guys have been saying that the HFT latency issues have not hit the options market, but I have been seeing otherwise. A couple weeks ago, I was trying to add some back month Oct slightly OTM VXX puts (-30 delta - they were not THAT far OTM) to add some contango protection to a spread position. The bid asked spread was about .40 cents wide so I split it with my limit order thinking I would have a reasonable chance of getting filled as the market moved around. (I use Tradestation, a direct access broker.). It showed that Tradestation auto-routed my order to the NASDAQ. It sat for a while without being filled, I happened to look at the market depth screen and sure enough, a bunch of other bids from other exchanges were showing with timestamps slightly ahead of my order. I cancelled and all the other bids backed down to where they were before I placed my order. I entered it again, same thing. I cancelled again, they moved back. Then I reentered the same bid, this time I specified it route to BOX, which was the one that went first in the queue the other times. Sure enough, I was first in the queue this time. This is where the retail guy gets screwed. The market makers do not seem to want to make a real market, but they are more than willing to block me from getting filled if someone else were to come in with a bid at my price. The other way we seem to get screwed over when I correctly pick a position and the underlying goes significantly my way, but the market makers decide that they only want to move one side of the spread. I end up looking to get out but the market is bid something stupid like bid 0.75, at 1.50 whereas when I got in when it was bid 0.52 at 0.58. I only trade penny pilot symbols with good option volume. I never buy in front of an implied volatility crush. Yet, this sort of action seems to happen way more often than it should. I just want the damn market makers to make an honest market. They want to be market makers but don't want to make markets. Thoughts? Love the shows. Hawkeye
  • Question from Elsa74 - Hello tech stars. Like the new direction for the network with this program. It's about time someone tackled trading tech on a show and Options Insider Radio Network is a great place to do it. Great guests so far, particularly Blair Hull. That guy has a lot of insight into the markets. I am looking forward to the next guests on the program. Now for my question. It might sound strange but I would like to know if the hosts think trading tech may have gotten too good. The options market is a good example. The recent mergers of brokers like Options House and Trade Monster was driven in many ways by the fact that they need to spend millions to keep their platforms cutting edge and they simply cannot afford it. They need economies of scale to be viable and continue to offer that level of functionality to the consumer. Do you think options customers are hurting ourselves by demanding too much from our brokers and therefore driving them out of the business - depriving ourselves of choice at the end of the day? I personally would much rather have a dozen brokers to choose from with different platforms rather than two or three monoliths controlling the entire business. Thanks again for this insightful program. Any chance we?re going to see a weekly TTT going forward?
  • Question from Indigo: You have said on the program several times that dark pools do not exist in the options market. Why is that? Is there some technical limitation preventing dark pools from launching in the options market vs. the equities market?

Trading Tech Talk 11: The Stealth Options Exchange

Trading Tech Talk 11: The Stealth Options Exchange CTO Interview Segment: Today's guest is Joe Corona, Director of Strategic Planning and Product Strategy at LiquidPoint, LLC. He discusses: An overview of his background in the derivatives...
Posted July 15th, 2014

Trading Tech Talk 11: The Stealth Options Exchange

CTO Interview Segment: Today's guest is Joe Corona, Director of Strategic Planning and Product Strategy at LiquidPoint, LLC.

He discusses:

  • An overview of his background in the derivatives markets
  • An overview of LiquidPoint, which is part of ConvergEx Group
  • Who is the typical end user?
  • Is it true that LiquidPoint would be the equivalent of the #7 options exchange if you aggregated all of the flow?
  • What are the main LiquidPoint algo types and what area of the derivatives market are they aimed at?
  • How does LiquidPoint's algo address the many issues associated with executing multi-leg spreads across exchanges?
  • Will their spread algo go the extra step and take delta risk on behalf of the client to execute an order?
  • Does he feel that we have reached the point of diminishing returns and increasing risk whenever a new venue is added to the marketplace?
  • His response to the post-Flashboys hysteria - particularly on the subject of dark pools?
  • What was the impetus behind the recent software merger with Actant? What was the impetus behind your merger with LiveVol?

The Inbox: Listener questions and comments

  • Question from Neal Finn - You discussed the tech problems with Mini options on a recent episode. NASDAQ released a notice two weeks ago saying they will no longer add new series to the existing Minis. Do you expect other exchanges to follow suit? Is this the end of Mini options?
  • Question from StandingO - The options insider complies a significant amount of unusual activity on a daily basis. I find some of the more obviously illegal trades disturbing, such as the recent well-timed trades in DG ahead of the Carl Icahn announcement. What sort of technology does the SEC and CFTC use to track these trades and trace them back to their source? Or am I living in a dreamworld and do these guys typically get away with it?

Trading Tech Talk 10: The Anti-Pit Proposal

Trading Tech Talk 10: The Anti-Pit Proposal Hot Topics in Tech: Vesel Interactive - taking a look inside the black box. Industry group believes CME Group should suspend open-outcry trading if Globex crashes and reopen for after-hours session. Can we...
Posted June 25th, 2014

Trading Tech Talk 10: The Anti-Pit Proposal

Hot Topics in Tech: Vesel Interactive - taking a look inside the black box. Industry group believes CME Group should suspend open-outcry trading if Globex crashes and reopen for after-hours session. Can we trust the SECs MIDAS touch? SEC supports plan to move more stock trading onto exchanges, away from private trading venues operated by banks and other firms.

The Lightning Round: Minis: the beginning of the end? Dark pools: the same? Flash Boys: Food for thought or hyperbolic source of disinformation?

The Inbox: Listener questions, comments, and feedback

  • Question from Innovert - Lots of talk about the Options House/Trade Monster merger today. Many reasons being tossed around. Do you think Tech was a big driver? In particular the cost of developing and maintaining a cutting-edge options platform? Is the simply beyond the reach of smaller firms these days? Have we as options traders come to expect too many bells and whistles?
  • Question from Derrin Jacoby - I have heard some talk about HTML5 on recent episodes. Can the hosts explain a little more about the benefits of this technology vs. earlier iterations of html? We did not see much in the way of Fin Tech web functionality with old versions of HTML. Everything sophisticated seemed locked to the proprietary client spectrum. Do you feel HTML5 has enough muscle to finally change that? Are we entering the brave new world of thin client functionality in the Fin Tech marketplace?
  • Question from Big Data - Flash Boys focuses a lot of detriments of colocation at exchanges. The book interprets that this offers unfair advantage to firms willing to pay for access. Whether you agree with this conclusion or not, do you feel we are entering a period of increased regulation and potential backlash against colocation? I would imagine this is a substantial revenue source that the exchanges will not part with without a fight. And what about the large data center like Equinix? They seem to be ground zero for this debate? Do you think we will see increasing regulatory crackdown on this private data center side of the business?

Trading Tech Talk 9: Diving into the Dark Pools

Trading Tech Talk 9: Diving into the Dark Pools Hot Topics in Tech: Exchange leaders take on dark pools. CBOE's Ed Tilly says less dark trades would benefit the market. Meanwhile, CME's Terry Duffy think regulators should look in dark pools. NYSE...
Posted May 30th, 2014

Trading Tech Talk 9: Diving into the Dark Pools

Hot Topics in Tech: Exchange leaders take on dark pools. CBOE's Ed Tilly says less dark trades would benefit the market. Meanwhile, CME's Terry Duffy think regulators should look in dark pools. NYSE will pare down the number of customer orders. O'Malia says high-speed trading outpaces CFTC oversight. Goldman under investigation for high-speed trading. UBS launches new trading algo platform. Hedge funds pump liquidity into options markets.

The Inbox: Listener Questions and Comments

Question from Charles Beldon, Wichita, KA - I enjoyed your earlier program about cyber security at the exchanges. DO you feel this is a recent phenomenon resulting from the changing geopolitical climate? Or has this been the case for the past decade, and exchanges and brokerage firms are just owing up to it now?

Comment from Mr. Tor -Any chance of an exchange CTO roundtable on the show? Would be great to get the lay of the land, so to speak, from an exchange respective. Maybe brokers and prop firms as well? Thanks.


Trading Tech Talk 8: the Modern Markets Initiative

Trading Tech Talk 8: the Modern Markets Initiative CTO Interview: Today we have Peter Nabicht, Former CTO at Allston. He discusses: An overview of the Modern Markets Initiative Research at MMI Some of the key takeaways/problems he found in...
Posted May 1st, 2014

Trading Tech Talk 8: the Modern Markets Initiative

CTO Interview: Today we have Peter Nabicht, Former CTO at Allston.

He discusses:

An overview of the Modern Markets Initiative

  • Research at MMI
  • Some of the key takeaways/problems he found in Flash Boys
  • The key tenet of the book that the markets are rigged against the little guy, and that HFT is the culprit
  • His view on a minimum order lifespan and/or a charge for canceling orders, which Blair Hull advocated
  • His view on dark pools, the other focus of Flash Boys

The Inbox: More Flash Boys, mini options

Question from Brendan Karl, Binghamton, NY - Great rundown of Flash Boys in your last episode guys. I'm sure you could probably fill many episodes with your problems with that book. But I'm curious what, if anything, you guys actually agreed with from the book? Thanks for putting this show on the air. Whether you agree with Flash Boys or not the book certainly shows that there needs to be more discussion on this topic. You guys are fighting the good fight.

Question from The Dark Horse - I've been hearing a lot about the failure (or potential failure) of the mini options lately. A lot of people seem to be pointing the finger at the symbology being such an implementation headache that the brokers and traders didn't want to touch them. What's your take?


Trading Tech Talk: The Great Flash Boys Debate

Trading Tech Talk: The Great Flash Boys Debate Hot Topics in Tech: It?s all HFT, all the time: The recent 60 Minutes interview with Michael Lewis along with his new book Flash Boys has reignited the conversation. My biggest problem with this...
Posted April 17th, 2014

Trading Tech Talk: The Great Flash Boys Debate

Hot Topics in Tech: It?s all HFT, all the time: The recent 60 Minutes interview with Michael Lewis along with his new book Flash Boys has reignited the conversation. My biggest problem with this book is that the material is so dated. It sounds like an OIC panel from 2006. Is HFT hurting the little guy? Is HFT impacting liquidity providers? Has the definition of front running changed? Charles Schwab calls HFT a "growing cancer."

The Inbox: Listener Questions

  • Question from Charles Vitner - How is the process described in the new book Flash Boys by Michael Lewis not front running? If you do it five minutes or five milliseconds before the order is that not the same thing?
  • Question from Anthony Neuberger - Can you please explain colocation and the benefits it offers? Why would a firm pay for this privilege?

Trading Tech Talk 6: Interview with Blair Hull

Trading Tech Talk 6: Interview with Blair Hull CTO Interview: Our guest on this episode is Blair Hull, Founder of Hull Trading, Founder of Ketchum Trading, and 2014 Sullivan Award recipient. He discusses: The 1987 crash If trading technology...
Posted April 7th, 2014

Trading Tech Talk 6: Interview with Blair Hull

CTO Interview: Our guest on this episode is Blair Hull, Founder of Hull Trading, Founder of Ketchum Trading, and 2014 Sullivan Award recipient.

He discusses:

  • The 1987 crash
  • If trading technology leveled the playing field
  • The impact of multiple market centers on trading tech failures
  • If HFT is a detrimental force in the financial markets

Hot Topics in Tech: Exchanges are extremely concerned over cyber security. NY Attorney General Erick Schneiderman is looking at the "unfair advantages" high frequency traders have over regular investors. Futures traders embrace algorithms. European asset manager are moving to in-house electronic execution expertise. NASDAQ OMX ramps up technology sales to Asian exchanges.

The Inbox: In which the listeners dictate the conversation.

Question from Hawkeye - I want to know if HFT firms are allowed to jump to the front of the queue? If so, how is that justified? Also, if so, why should they not get in back like everybody else? Please give me the justification for this practice. On a similar vein, I know that some platforms allow you to hide the number of actual shares/contracts you have bid/offered, and instead you can show a smaller number so that you do not tip your hand. Do those remaining orders have to get in the back of the queue? Or are they also given favorable treatment? Why should they be allowed to lie? Thanks

Looking Ahead: TT is releasing a web-based HTML 5 version of XTrader.


Trading Tech Talk 5: 2014 Trading Technology 40

Trading Tech Talk 5: 2014 Trading Technology 40 CTO Interview: Our guest today is Jeffrey Kutler, Editor-in-Chief of Risk Professional, the publication of the Global Association of the Risk Professionals (GARP). Jeff is the author of Institutional...
Posted March 25th, 2014

Trading Tech Talk 5: 2014 Trading Technology 40

CTO Interview: Our guest today is Jeffrey Kutler, Editor-in-Chief of Risk Professional, the publication of the Global Association of the Risk Professionals (GARP). Jeff is the author of Institutional Investors "2014 Trading Technology 40."

He discusses:

  • The criteria went into compiling the "Trading Tech 40"
  • Is the race to zero over or is this just a brief hiatus?
  • Did the growing impact of HFT on the marketplace factor into the Trading Tech 40?
  • How did the many high-profile financial technology failures of 2013 factor into the 2014 list?
  • How did the creation of a host of new SEF firms impact the list?

Notable names on the list:

  • #1: ICE
  • #2: CME
  • #8: BATS

The Inbox: In which the listeners dictate the conversation.

  • Question from Adam Boies, Ontario -Question for TTT - I would like to ask the TTT panel their opinion on the proliferation of private exchanges and marketplaces. These essentially create liquidity and access to capital for privately-held firms without the need for an IPO. What sort of tech hurdles are posed by a private marketplace vs. a traditional exchange? Will this new trend render the traditional IPO irrelevant? I enjoy your fine program and look forward to each new episode.
  • Question from Alessandro Nici - From Google Glasses to Fitbit, the technology world is obsessed with wearables. Most of the focus in on the consumer tech space, but I am more interested in the potential in the financial space. Do you expect wearables to become a factor in the financial space in the near future? For example - trading via Google Glasses or perhaps managing your firms IT infrastructure at a glance from your Smartwatch? Is this perhaps an area where the retail sector might lead the institutional sector in adoption and implementation of a new technology? I for one look forward to the day when I can buy a few contracts with a simple nod of my head or the blink of an eye.
  • Comment from Mr. Charles - Looks like TTT hit the nail on the head. From the Mt. Gox fiasco to other recent disasters, looks like Bitcoin is on the way out.

Trading Tech Talk 4: Cheaters Among Us?

Trading Tech Talk 4: Cheaters Among Us? Hot Topics in Tech: SEC launching new tech to spot insider trading. The Atlantic says high-frequency trading is "cheating." Is a transaction tax really necessary? The Inbox: Question from Nik Thomas,...
Posted March 10th, 2014

Trading Tech Talk 4: Cheaters Among Us?

Hot Topics in Tech: SEC launching new tech to spot insider trading. The Atlantic says high-frequency trading is "cheating." Is a transaction tax really necessary?

The Inbox:

Question from Nik Thomas, Sarasota, FL -Thank you for launching this show. It's about time someone really dove into the tech that is underlying all of the products that we love to trade. I know you touched on it briefly on the first episode, but can you devote some time to the growing plague of HFT on the derivatives market - impact on liquidity, impact on technology, impact on orders, etc.? Thanks and looking forward to the next episode.

Question from Athos04 -Would love a show on order routing tech - How does my trade get from my computer (or brokers server) to exchange - what impacts the trip?

Lightning Round:

Is Bitcion a viable alternative currency or a dangerous money-laundering fad? Laser data transfer, is it the new microwave or fiber? Paying for access to surveys, should it be illegal?


Trading Tech Talk 3: Unlocking the Secrets of the GPU

Trading Tech Talk 3: Unlocking the Secrets of the GPU CTO Interview: This episode's guest is Jerry Hanweck, Founder of Hanweck Assoc. He discusses: An overview of his background in the derivatives markets and what he does at Hanweck. Why he...
Posted February 27th, 2014

Trading Tech Talk 3: Unlocking the Secrets of the GPU

CTO Interview: This episode's guest is Jerry Hanweck, Founder of Hanweck Assoc.

He discusses:

  • An overview of his background in the derivatives markets and what he does at Hanweck.
  • Why he focuses on acceleration?
  • Why are derivatives markets, particularly options, uniquely suited to GPU acceleration?
  • Does he feel that GPU acceleration hardware is the solution to the explosion of data/messaging is a serious problem for the derivatives markets?
  • Why does he feel the financial markets have been slower to adopt cloud environments than other industries?

Hot Topics in Tech: The ongoing and raging debate over flickering quotes. Is the system being gamed? Growing electronic access to the pits in 2014. An outlook for self in 2014.


Trading Tech Talk 2: Hackers and Rogue Algos

Trading Tech Talk 2: Hackers and Rogue Algos Hot Topics in Tech: Security of Financial Platforms Should we expect more attacks in the future? Is this the new norm going forward? What sort of realistic uptime expectations should institutional...
Posted February 13th, 2014

Trading Tech Talk 2: Hackers and Rogue Algos

Hot Topics in Tech: Security of Financial Platforms

Should we expect more attacks in the future? Is this the new norm going forward? What sort of realistic uptime expectations should institutional clients, end users of exchanges and vendors have in this environment? Are we approaching a point where retail clients should maintain multiple brokerage account to ensure access at all times?

While the recent OPRA problem was limited to NASDAQ OMX, it highlights the issue of the entire industry fixating around a single point of failure. What risks does that pose to the marketplace? How do we address that as an industry? Rogue algos are not just the domain of equities and options anymore; futures are now under attack as well.

The Inbox: We?re taking your questions

  • Question from Amac: Is there a way for small traders to see or get access to big options shows via IM? Seems like I am missing much of the picture.
  • Question from T. Norvin: What exactly is a sweep order? Can a sweep be used to lift liquidity without moving markets? I.e. Buy 10 on all vs. 100 on one exchange?

The Lightning Round: A minute to win it

  • Should customer open multiple brokerage accounts to avoid security risks?
  • The industry will have a backup/alternate to OPRA in place by the end of 2014 - Yea or Nay?
  • Will every major derivatives exchange experience some sort of systems outage/glitch in 2014?
  • Will microwave transmission gain a foothold in the U.S. financial markets in 2014?

Trading Tech Highs and Lows of 2013

Episode 1: Tech Highs and Lows of 2013 In the premiere episode, Mark is joined by: Henry Schwartz - Founder and CEO of Trade Alert Kapil Rathi - Director of Product Management, ISE Brian Haag - Group Product Manager, Proprietary Trading...
Posted January 29th, 2014

Episode 1: Tech Highs and Lows of 2013

In the premiere episode, Mark is joined by:

  • Henry Schwartz - Founder and CEO of Trade Alert
  • Kapil Rathi - Director of Product Management, ISE
  • Brian Haag - Group Product Manager, Proprietary Trading at Trading Technologies

Hot Topics in Tech Segment

  • Technologies of 2013: Cloud, cloud, and more cloud! Why is it the new big thing? What is in store for the future of cloud?
  • Last year was "The Year of the Tech Failure." What may have caused this?
  • High Frequency Trading: How does the noise compare to its actual order flow in volume? All that and much more on the premiere episode of Trading Tech Talk

The Options News RundownAudio

Your source for the most important news and information from the world of options.

The Options Insider Radio NetworkAudio

All of our radio programs in one convenient place.

Options Insider RadioAudio

The original options podcast. Features interviews with leading options figures.

The Option BlockAudio

This high-octane program features education, analysis, strategies and unusual activity.

Volatility ViewsAudio

The premier radio program for volatility traders.

The Long And Short Of Futures OptionsAudio

Your source for futures options information.

The Advisor's OptionAudio

Arming advisors with the info necessary to manage risk.

Options Boot CampAudio

Get into peak options trading shape.

Options Insider Special EventsAudio

Compelling panel & special event recordings from the options world.

OIC's Wide World of OptionsAudio

A dynamic mix of current events, investor resources, & strategy insights.

Trading Tech TalkAudio

We break down all the amazing technology that takes your trades from the click of a mouse to the clearinghouse.

Options Playbook RadioAudio

Break down cutting-edge options strategies and learn how to incorporate them into your portfolio

Options OdditiesAudio

We track all the unusual options trading activity on Options Oddities.

This Week in Futures OptionsAudio

The program designed to help active futures options traders stay on top of this ever-changing marketplace. 

The Business ShowAudio

If you like business, if you like humor, if you like stock symbols, this is the podcast for you.
x

The Options Insider Radio Network

The Options News Rundown

Your source for the most important news and information from the world of options.

The Options News Rundown

The Options Insider Radio Network

All of our radio programs in one convenient place.

The Options Insider Radio Network

Options Insider Radio

The original options podcast. Features interviews with leading options figures.

Options Insider Radio

The Option Block

This high-octane program features education, analysis, strategies and unusual activity.

The Option Block

Volatility Views

The premier radio program for volatility traders.

Volatility Views

The Long And Short Of Futures Options

Your source for futures options information.

The Long And Short Of Futures Options

The Advisor's Option

Arming advisors with the info necessary to manage risk.

The Advisor's Option

Options Boot Camp

Get into peak options trading shape.

Options Boot Camp

Options Insider Special Events

Compelling panel & special event recordings from the options world.

Options Insider Special Events

OIC's Wide World of Options

A dynamic mix of current events, investor resources, & strategy insights.

OIC's Wide World of Options

Trading Tech Talk

We break down all the amazing technology that takes your trades from the click of a mouse to the clearinghouse.

Trading Tech Talk

Options Playbook Radio

Break down cutting-edge options strategies and learn how to incorporate them into your portfolio

Options Playbook Radio

Options Oddities

We track all the unusual options trading activity on Options Oddities.

Options Oddities

This Week in Futures Options

The program designed to help active futures options traders stay on top of this ever-changing marketplace. 

This Week in Futures Options

The Business Show

If you like business, if you like humor, if you like stock symbols, this is the podcast for you.

The Business Show

Options Playbook Radio 155: AMZN Skip-Strike Butterfly

Earnings season makes an AMZN skip-strike butterfly an interesting prospect.

Options Playbook Radio 155: AMZN Skip-Strike Butterfly