My mentor also has me working on a client list of lawyers and accountants in the area who are looking for financial advisors. It is real exiting to see all the steps it takes to start a business from scratch. Hopefully it wont be long until we actually start to see clients walk through the door. We still have more to do in terms of marketing and getting our name out there but we have come along way since my first day. It feels good to know that the work I am doing is being appreciated and has actual use to the company not just answering the phone or filing papers.
Wednesday, November 10, 2010
HFT
My new job for the week is to study up on high frequency trading (HFT) and eventually help my mentor with another report telling our opinion on the subject. HFT is basically a complex algorithm that buys and sells millions of stocks a day making minimal gains but when you multiply those small gains a couple million times you end up with significant profit. HFT also accounts for over 70% of the equity market today and many people believe high frequency trading was a main cause of the flash crash that took place in may. So far HFT seems very dangerous but possible extremely profitable.
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HFT is an interesting topic; I'll be anxious to hear your opinion on it. It raises some interesting ethical questions, comparable to what we've discussed in class -- "Do I bear any responsibility to the market at large (to avoid possible future crashes), if HFT can generate profits for me and my clients?"
ReplyDeleteSome reports have suggested that a single company's trades triggered the flash crash, although other companies using similar technology contributed.