Real-time surveillance technology needed to monitor HFTs, brokers claim

10 June 2010

Nearly three-quarters of delegates at a financial technology event said that brokers require real-time monitoring technology to keep track of high-frequency trades (HFTs), a survey has shown.

Findings from a study by Progress Software revealed that many of the respondents, quizzed at the recent Trade Tech 2010 event, had a positive outlook for the future of HFTs.

According to the report, less than a quarter thought that the integrity of the markets could be harmed by HFTs.

Almost three-quarters of those questioned said that the use of HFTs would not increase the potential for market abuse, the study also revealed.

Dr Giles Nelson, deputy chief technology officer at Progress Software, said: “There is no question that high frequency trading is here to stay and the benefits are clear to market participants.

“The practice has created opportunities for firms to remain competitive in challenging markets. However, it is crucial to provide the technology to provide the checks and balances necessary when moving at lightning speeds by detecting market abuses in real time.”

Further findings from the survey revealed that 40 per cent of the participants in the survey said that HFTs would increase efficiency and liquidity within the markets.

By Jim Ottewill

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