Wednesday, October 5, 2011

Flocking Behaviour Improves Performance Of Financial Traders� - Technology Review

Flocking Behaviour Improves Performance Of Financial Traders� - Technology Review: Out of all this seemingly unconnectedness, synchrony still emerges between entirely unrelated trades. Saavreda and co say that 96 per cent of simultaneous trades--those that occur within a second of each other--are of different stocks...
...During the working day, traders constantly message each other through a network that, by law, has to be carefully monitored. Traders use this system to make sense of the news they are receiving...
...It turns out that messaging patterns are positively correlated with the level of synchrony. In other words, as traders exchange more messages, they become more synchronized.

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