High-Frequency Trading: Environment
How High-Frequency Trading environment looks like?
Technology Then and Now
High-frequency
trading has taken place at least since the 1930s.
The
rapid-fire computer-based HFT developed gradually since 1983 after NASDAQ
introduced a purely electronic form of trading.
Securities trading methods and techniques have come a long way since the early 18th century when they were carried out in a commodities market on Wall Street.
Until as recently as in 1960s, the financial information spread slowly, and the trading wad almost entirely manually.
ADOPTION OF MODERN TECHNOLOGY
In 1971, the National Association of Securities Dealers Automated Quotations (NASDAQ) adopted the electronics technologies in stock markets and started the introduction of quotation system.
In 1976, he Designated Order Turnaround (DOT) system was introduced in the New York Stock Exchange (NYSE), allowing the electronic transmission of orders to buy and sell securities.
If you are interested to see the technology and financial environment that were adopted in 1980s, then movie Wall Street (1987) is an excellent choice.
In year 2009, SuperDOT was replaced by the new NYSE Super Display Book system (SDBK) for processing orders.
In 2012, Display Book was replaced by Universal Trading Platform (UTP).
High Frequency Trading environment NOW
What is High Frequency Trading?
It is a form of algorithmic based financial trading which include range of operations. It is faster and more efficient than convention low-frequency trading.
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