In the last year or so, stock prices have been moving drastically up and down, a phenomenon known as market volatility. The latest research from AbleMarkets shows that investors can help reduce intraday volatility by collectively expressing their opinions about a stock’s imminent direction on social media. By speaking up online, investors appear to speed up the formation of market consensus and the resulting price adjustment, minimizing price volatility in the process. Social media continuously updates our collective knowledge of financial markets. Investors posting their thoughts online and experiences with a particular publicly-traded firm may encourage others to consider investing into the stock of thatRead More →

Aggressive high-frequency trading (HFT) is a classification of electronic trading strategies that rely on ultra-fast infrastructure and market orders to take advantage of news, predictive analytics or short-lived information asymmetries. Unlike passive HFTs that tend to provide market-making services, aggressive HFTs’ models attempt to reach the markets prior to others to capitalize on short-term market inefficiencies. Aggressive HFT Index tracks aggressive HFT activity in real time and has developed statistical insights into aggressive HFT behavior, some of which are summarized in this article. Among the S&P 500 stocks, for instance, aggressive HFTs are more prevalent in equities with a) Higher prices b) Lower dividendRead More →

By Irene Aldridge What is the quantitative evidence regarding the presence of aggressive high-frequency traders (HFTs) in today’s markets? Our firm’s AbleMarkets Aggressive HFT Index tracks the participation of aggressive HFTs in real-time and offers some interesting observations. As 2014 rolls to a close, we are able to offer comprehensive statistics on tick-by-tick, minute-by-minute and hour-by-hour evolution of aggressive HFT participation during this past year, as well as daily statistics presented in this article. Why does aggressive HFT participation matter? Multiple academic studies have confirmed that aggressive HFTs worsen market conditions for institutional investors. The aggressive HFTs are not to be confused with the passiveRead More →