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What exactly do computerized record processing systems have to do with algorithmic trading, besides that both use computers to do the actual processing necessar

by yuliyp 13y ago

What exactly do computerized record processing systems have to do with algorithmic trading, besides that both use computers to do the actual processing necessary?

seferphier 13y ago
exactly. I was hoping for more content, but it ended without connecting between algo trading and computerized record
ddeck 13y ago
Well automation of the trade processing element is what has allowed for algorithmic trading to be possible at anything above a glacial frequency. But I'm not sure what your question is in response to. Was there a suggestion of a link? I didn't see algorithmic trading mentioned, simply a description of the automation of trade processing that has occurred over the years (vs automation of the trade decision making process).
- yuliyp 13y ago
  The article led with talk of algorithmic trading, then ended up actually talking about computerized trade processing. These have nothing to do with each other, but were just juxtaposed for clicks.
nohuck13 13y ago
I had the same thought. The article is more about the history of securities clearing. I worked for a couple of years on clearing tech and have worked in trading tech. The two sides are didn't share much in the way of systems but clearing tech came first and enabled e.g. direct exchange data feeds. Clearing is the quintessential PG "schlep" problem, relatively easy math, an administrative hassle to set up accounts and connectivity. Dominated by a few big players and "enterprise" software vendors that no one is really happy with. Some of the systems from the 1970's are still in production. Our technology counterpart from one of the main US CCP's [1] (and a really nice guy) told us he was running a mainframe emulator on his Windows box to service requests in 2010. Wish I could remember what the mainframe was. [1] http://en.wikipedia.org/wiki/Central_Counterparty_Clearing http://en.wikipedia.org/wiki/Central_Counterparty_Clearing Edit: fixed mispaste, link, clarified
njharman 13y ago
I don't even think today's issue was Algol or high frequency related. And electronic exchanges (more than record processing) are what's made HF and many formd of Algol trading possible.
suyash 13y ago
Another misleading title - cheap seo tricks.
cabacon 13y ago
I don't know, even the non-HFT side of computers in trading is interesting. I looked at http://raudys.com/kursas/2002%20Trading%20and%20exchanges.pdf http://raudys.com/kursas/2002%20Trading%20and%20exchanges.pd... the other day, which is a set of chapter-excerpts from "Trading and Exchanges". It was a great read in a "Here's how the sausage is made" kind of way. It offered a very pragmatic overview of how and why things are the way they are; it certainly enticed me into getting the full book.
- seewhat 13y ago
  A piece of trivia: "Bernard L. Madoff Investment Securities" is listed as a well-known example of a sell-side dealer (the publishing date is 2002). Understandably, some other firms no longer operate under their listed names.

by yuliyp 13y ago

What exactly do computerized record processing systems have to do with algorithmic trading, besides that both use computers to do the actual processing necessary?

seferphier 13y ago

exactly. I was hoping for more content, but it ended without connecting between algo trading and computerized record

ddeck 13y ago

Well automation of the trade processing element is what has allowed for algorithmic trading to be possible at anything above a glacial frequency. But I'm not sure what your question is in response to. Was there a suggestion of a link? I didn't see algorithmic trading mentioned, simply a description of the automation of trade processing that has occurred over the years (vs automation of the trade decision making process).

yuliyp 13y ago
The article led with talk of algorithmic trading, then ended up actually talking about computerized trade processing. These have nothing to do with each other, but were just juxtaposed for clicks.

nohuck13 13y ago

I had the same thought. The article is more about the history of securities clearing. I worked for a couple of years on clearing tech and have worked in trading tech. The two sides are didn't share much in the way of systems but clearing tech came first and enabled e.g. direct exchange data feeds. Clearing is the quintessential PG "schlep" problem, relatively easy math, an administrative hassle to set up accounts and connectivity. Dominated by a few big players and "enterprise" software vendors that no one is really happy with. Some of the systems from the 1970's are still in production. Our technology counterpart from one of the main US CCP's [1] (and a really nice guy) told us he was running a mainframe emulator on his Windows box to service requests in 2010. Wish I could remember what the mainframe was. [1] http://en.wikipedia.org/wiki/Central_Counterparty_Clearing http://en.wikipedia.org/wiki/Central_Counterparty_Clearing Edit: fixed mispaste, link, clarified

njharman 13y ago

I don't even think today's issue was Algol or high frequency related. And electronic exchanges (more than record processing) are what's made HF and many formd of Algol trading possible.

suyash 13y ago

Another misleading title - cheap seo tricks.

cabacon 13y ago

I don't know, even the non-HFT side of computers in trading is interesting. I looked at http://raudys.com/kursas/2002%20Trading%20and%20exchanges.pdf http://raudys.com/kursas/2002%20Trading%20and%20exchanges.pd... the other day, which is a set of chapter-excerpts from "Trading and Exchanges". It was a great read in a "Here's how the sausage is made" kind of way. It offered a very pragmatic overview of how and why things are the way they are; it certainly enticed me into getting the full book.

seewhat 13y ago
A piece of trivia: "Bernard L. Madoff Investment Securities" is listed as a well-known example of a sell-side dealer (the publishing date is 2002). Understandably, some other firms no longer operate under their listed names.