Uptick rule could curb quant fund risk: Man Group CEO - News and Current Events | futures io social day trading
futures io futures trading

Uptick rule could curb quant fund risk: Man Group CEO
Updated: Views / Replies:649 / 0
Created: by kbit Attachments:0

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Thread Tools Search this Thread

Uptick rule could curb quant fund risk: Man Group CEO

  #1 (permalink)
Elite Member
Aurora, Il USA
Futures Experience: Advanced
Platform: TradeStation
Favorite Futures: futures
kbit's Avatar
Posts: 5,884 since Nov 2010
Thanks: 3,303 given, 3,334 received

Uptick rule could curb quant fund risk: Man Group CEO

(Reuters) - The head of Man Group, the world's biggest listed hedge fund manager, is backing the reintroduction of the so-called 'uptick rule' to reduce the risk of a market crash prompted by lightning-fast computer traders.

Peter Clarke told a conference on Monday that the U.S. rule, which only allowed short-selling -- bets on a share price falling -- if the last sale price of a stock was higher than the previous price, could help stop some rapid-fire computer hedge funds fuelling market falls.

His comments come after quantitative hedge funds were twice involved in market sell-offs during the financial crisis. In the summer of 2007 a number of quantitative hedge funds suffered heavy losses after being caught in a vicious circle of selling.

And the U.S. Securities and Exchange Commission (SEC) partly blamed the 2010 "flash crash," when the Dow Jones index fell nearly 1,000 points before bouncing back in a matter of minutes, on high-frequency trading firms, which can make tens of thousands of ultra-fast trades a day.

"From a personal perspective, reintroducing the uptick rule, for example ... would not be a particularly bad thing," Clarke told the London School of Economics Alternative Investments Conference on Monday.

"You can only short when the previous trade was an uptick, which would stop some of the ... quant strategies from becoming systemic in certain markets over the short term."

First adopted after the 1929 market crash, the uptick rule was abolished in 2007 after the SEC concluded it was no longer effective in modern markets, although some commentators have since called for it to be reintroduced to curb the effects of short-selling.

Clarke also said that high-frequency traders, whose strategies include making markets for other investors, did not contribute to overall market liquidity -- one of their key defenses adopted by the controversial sector.
High frequency trading accounted for 56 percent of U.S. and 36 percent of European equity volume in 2010, according to TABB Group.

"There's a big debate -- are they providing liquidity or are they taking liquidity? My personal view is they're not really providing any liquidity because they don't take positions over the end of the day," he said.

However, he added: "The solution to this ultimately is to have tons of market participants... People trying to participate in the trade in nanoseconds, people who have got 30-year time horizons, people who don't care about liquidity, people who care passionately about liquidity...

"As soon as you start excluding a short seller or a margin seller or a levered player or a faster player then you start to destabilize things."

The SEC is currently considering obliging high-frequency firms to make markets in all trading conditions.
Man Group's flagship fund is one of the world's biggest computer-driven hedge funds -- the $21 billion AHL -- although its strategy is to follow market trends rather than trade tiny discrepancies in stock prices or make markets for other investors.

Uptick rule could curb quant fund risk: Man Group CEO | Reuters

Reply With Quote
The following user says Thank You to kbit for this post:


futures io > > > > Uptick rule could curb quant fund risk: Man Group CEO

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Upcoming Webinars and Events (4:30PM ET unless noted)

Wyckoff Hunting for Great Risk/Reward Ratio w/Gary Fullett

Elite only

Digging into the Details of iSystems w/Stage 5 & iSystems

Jun 5

Similar Threads
Thread Thread Starter Forum Replies Last Post
MF Global May Have Hid Recent Fund Transfers: CME Group Quick Summary News and Current Events 0 November 2nd, 2011 06:10 PM
Public Pension Fund Targets Over 100 Firms on CEO Pay Quick Summary News and Current Events 0 October 14th, 2011 08:30 PM
Bring Back the Uptick Rule! kbit News and Current Events 0 August 30th, 2011 10:45 PM
Chavez Illness Highlights 'Key Man Risk' in Venezuela Quick Summary News and Current Events 0 July 8th, 2011 03:30 AM
[Other]       Open Quant / Quant Developer niterate Platforms and Indicators 2 December 5th, 2010 09:10 PM

All times are GMT -4. The time now is 10:14 AM.

Copyright © 2018 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2018-05-24 in 0.08 seconds with 19 queries on phoenix via your IP