Debate : High frequency FX trading: technology, techniques and data

With Dr Richard Olsen, Chairman and CEO of Olsen, Thomas Parry, Director of Algorithmic trading at Plimsoll Capital, Jonathan Webb, Portfolio manager at C-View

First Published: e-Forex Magazine 28 / Debate / July, 2007

Is success in high frequency trading (HFT) in FX almost entirely dependent upon having superior technology? Dr Richard Olsen: Definitely, HFT is technology-driven. At Olsen we have developed a systematic trading environment that executes approximately 3,000 trades per day. The platform is computer-based, where humans oversee the trading activity without actively intervening. We human beings check that the processes are running according to plan. In an emergency we will reactivate a process. Our trading-model environment comprises the following services: the core trading model taking trading decisions; a trading-support service for trade execution (the actual trades); customer reporting; and a host of monitoring tools. As is typical of modern technology, the success of our environment does not rely on one or two ideas, but builds on a complex system that has been well-tuned at all levels of operation. Thomas Parry: Although superior technology can be a significant competitive advantage in...continued

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