The practice of market making has evolved significantly from human math machines operating in a trading pit to intelligent computers operating at speeds too fast for human cognition to respond. Today’s electronic marketplace is more about “immediacy” than at any point in history, as computers now interact with computers. This new dynamic has improved market efficiency, a new report from Tabb Group claims, aiming to bust what it says are four common myths in today’s high-frequency race for speed that has become the market making landscape. High frequency trading analyst Haim Bodek, on the other hand, points to a...
Modern Market Making Provides Safe Liquidity Or Intercepting Liquidity?
Mark Melin
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Subscribe and get an extra 30% off annual with code LETTERSMark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.