From the Wall St Journal: Some entrepreneurs are aiming to convince traders and institutions that their new trading systems offer a leg up by decelerating the execution of trades. Hedge funds, mutual funds and other big investors have been looking for ways to fight back against the powerful computer systems used by so-called high-frequency traders. Such lightning-fast systems, which use algorithms to buy and sell securities, now account for more than half of U.S. stock trading, according to market researchers.
Money managers have been taking steps to gain back their lost advantage, and profits, underlying the deep tensions created by the increased role of high-frequency traders. Big investors now race to trade covertly, commonly slicing up their orders into smaller blocks using algorithms and routing them through "dark pools," the secretive electronic-trading networks that anonymously match buyers and sellers, usually on a first-come, first-served basis….
Read more at http://online.wsj.com/article/SB10001424052970204621904577014322893270382.html?mod=WSJ_business_whatsNews
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