Why Wall Street Might Care About Femtoseconds

Whether looking at the nineteenth century or now, Wall Street has always had fast traders who knew how to get the news before their competitors.

Throwback Thursday: When Wall Street Trading Was Slower

#TBT: Today we look back to how we used to trade stocks. Slower Trades Our story (sort of) starts 225 years ago on Wall Street with the origin of the New York Stock Exchange (NYSE). Gathering in coffeehouses or under…

What Tweets Can Say About the Dow

Researchers are exploring how message volume and sentiment analysis in social media like Twitter and Yahoo can be used to predict financial markets.

Stock Markets: High Speed Trading

High frequency trading might be an elephant in the closet. Representing perhaps 51% of all daily trading volume, speedy trading hits the headlines only when something goes wrong. But since I’ve been reading Frank Partnoy’s Wait: The Art and Science of…

Stock Markets: Should Wall Street Slow Down?

Soon after the New York Stock Exchange (NYSE) opened yesterday, the prices of more than 140 securities moved irrationally. Some were up 150%. Though no one yet has said why, we do know that fast trading computer programs—high-frequency trades—were the…

Orderly Markets

No one has figured out the cause of the “flash crash”. Some background information might help, though, when we try to understand what happened. On May 6th, the Dow Jones Industrial Average plunged close to 1000 points, then made up some…