High frequency trading (HFT) environments provide technologies that enable algorithmic trading within automated marketplaces. The most prominent example of an HFT environment is within equity trading, where many millions of trades are achieved at a high volume to gain a reasonable cumulative profit. Such environments rely on low latency/high performance technologies to allow trades to react in ...

Many existing and proposed electronic payment systems are quite insecure and the number of claims involving fraudulent or disputed transactions is rising steeply. The banks’ recent action in limiting customers’ liability for such transactions through automatic teller machine (ATM) systems to £50 may in practice limit ATM claims to those cases where consequential losses are involved, but growing...

Financial markets are highly complex adaptive systems. This paper deals with the application of simulators in software architectures for back-testing and automating financial market trading strategies. It characterizes traits and problems of algorithmic trading and describes the established use of simulators in back-testing and automated trading. A new approach in the form of a hierarchical sof...

Financial trading has been described as ‘‘technological warfare’’. Whether or not you believe the metaphor, trading systems certainly involve a tremendous need for highly reliable, interruption free, real-time data. Real-time, in this case, means presented accurately and without delay. Current practice of medium to large trading floors often involves Unix based workstations and significant atte...

This paper summarizes the responses to a questionnaire sent to equity traders through TraderForum of the Institutional Investor. The respondents manage in total a very significant percentage of equity assets under management in the United States. The focus of the questions was the extent of the demand for immediate execution of orders. We found that the majority of traders are willing to trade ...

Finally, the retailer can send the order to the supplier at the press of a button, with the order first being automatically converted and then transmitted to the supplier. All messages are sent in accordance with the UN/EDIFACT standard. The messages received by the distribution centre from all retailers are automatically checked for availability (ability to deliver) and, if the result is posit...

A requirement analysis for a portfolio management in stock trading is presented. This provides a theoretical foundation for a stock trading system. The overall portfolio management tasks include eliciting user profiles, collecting information on the user’s initial portfolio position, monitoring the environment on behalf of the user, and making decision suggestions to meet the user’s investment ...

At the University of Arizona, electronic trading (now commonly known as e-commerce) in the experimental laboratory began in 1976 when Arlington Williams conducted the initial experiments testing the first electronic “double-auction” trading system, which he had programmed on the Plato operating system. The term “double auction” refers to the oral bid-ask sequential trading system used since the...

This work’s main purpose is to understand the price dynamics in a generic limit order market, and illustrate a dynamical trading mechanism that can be applied to explore its market microstructure. First and foremost, we capture the iterative nature of the limit order market, and quantitatively identify its capacities as a means to develop switching schemes for the appearances of different sorts...

Can belief shocks make trading excessive ? We present a dynamic inventory management model in which belief shocks gradually propagate across traders, leading to the inflated trading activity which reduces traders’welfare. Trading can be socially beneficial because smoothing heterogeneous asset positions saves inventory costs. Without belief shocks, traders focus on the socially beneficial tradi...