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The Speed Traders' Edgar Perez to CNBC's Oriel Morrison, Criticism of High-Frequ ency Trading Phenomenon Unfair Edgar

Perez, Author of The Speed Traders: An Insider's Look at the New High-Freq uency Trading Phenomenon That is Transforming the Investing World, Published by McGraw-Hill Inc, Interviewed Today by CNBC Cash Flows Oriel Morrison. New York, NY, June 27, 2011 -- Edgar Perez, Author, The Speed Traders: An Inside r s Look at the New High-Frequency Trading Phenomenon That is Transforming the I nvesting World, explained in detail the role high-frequency trading has been pla ying in the equity markets to CNBC Cash Flows Oriel Morrison; the interview is av ailable on CNBCs website at http://video.cnbc.com/gallery/?video=2023403523. High -frequency trading, in which computers may buy and sell thousands of shares in f ractions of a second, had come under criticism after the Dow Jones Industrial Av erage lost almost 1,000 points intraday on May 6, 2010, before recovering just a s quickly. Mr. Perez described high-frequency trading as the natural progression of technol ogy applied to the investing and trading worlds. In the process, high-frequency trading has certainly unmasked structural issues in the U.S. equity markets that are currently being examined by legislators and regulators in an effort to furt her strengthen financial markets. He indicated that, on balance, the impact of h igh-frequency trading is positive for all other market participants thanks to th e increased liquidity it provides to retail and institutional investors. High-frequency traders replace traditional specialists in providing liquidity in a much more competitive frame work. Liquid and efficient capital markets are ex tremely important for economic development. While some feel that high-frequency traders spending millions of dollars on infrastructure to be a few microseconds faster than the other guy, is somehow, from a social perspective, not money "wel l spent", it can be argued that this is just the way that competitive markets fi nd equilibrium. As expressed by Stuart Theakston, Head of Quantitative Research and Automated Tr ading with GLC and one of the practitioners featured in The Speed Traders, highfrequency trading has all the attributes required to make a perfect scapegoat: It is hard to understand, or at least, it takes a bit of effort to understand (e ven professional long-only institutional investors have difficulty understanding it) It is fairly exclusive, as the about what they do (because they ttract external capital), or are d have regulatory constraints on firms involved, either have no incentive to talk are proprietary trading firms and dont need to a not allowed to (because they are hedge funds an marketing themselves)

It employs individual participants having very high levels of academic qualifica tions, mostly PhDs It has some large dollar numbers associated with it (though more in terms of tur nover than profitability, as further detailed in The Speed Traders)

It has lots of terminology associated with it that sounds geeky and confusing to the uninitiated: microsecond, co-location, momentum ignition, temporal arbitrage e Some intelligent, well informed and eminently quotable people are railing agains t it (Mario Gabelli, Paul Wilmott, Richard Bookstaber, among others) It is prone to occasionally be a contributory factor (or, in fact, its switching off was a contributory factor) to events perceivable by the public, like the "f

lash-crash" The Speed Traders, http://www.TheSpeedTraders.com, published by McGraw-Hill Inc. , is the most comprehensive, revealing work available on the most important deve lopment in trading in generations. High-frequency trading will no doubt play an ever larger role as computer technology advances and the global exchanges embrac e fast electronic access. The Speed Traders explains everything there is to know about how today s high-frequency traders make millionsone cent at a time. Mr. Perez is widely regarded as the pre-eminent networker in the specialized are a of high-frequency trading. He is the founder of Golden Networking and host of High-Frequency Trading Happy Hour business receptions (http://www.hfthappyhour.c om) in New York City, which have drawn the world s top industry practitioners. H e has been interviewed by CNBC, TheStreet.com, Bloomberg and Channel NewsAsia, a nd engaged as speaker at Harvard Business School s 17th Annual Venture Capital & Private Equity Conference, Columbia Business School s Career Management Center and Alumni Club of New York, High-Frequency Trading Leaders Forum 2011 (New York , Hong Kong, Chicago, Sao Paulo, Singapore), CFA Singapore, and Hong Kong Securi ties Institute, among others prestigious forums. Mr. Perez was a vice president at Citi, a senior consultant at IBM, and a consul tant at McKinsey & Co. in New York City. Mr. Perez has an undergraduate degree f rom Universidad Nacional de Ingeniera, Lima, Peru (1994), a Master of Administrat ion from Universidad ESAN, Lima, Peru (1997) and a Master of Business Administra tion from Columbia Business School, with a dual major in Finance and Management (2002). He is a member of the Beta Gamma Sigma international honor society. Mr. Perez resides in the New York City area and is an accomplished salsa and hustle dancer. Mr. Perez is one of the great business networkers and motivators on the lecture circuit; he is available worldwide for the following speaking engagements: Prese nt and Future of High-Frequency Trading, The Real Story behind the "Flash Crash" , Networking for Financial Executives, and Business Networking for Success. Contact: Edgar Perez The Speed Traders New York, NY +1-516-761-4712 info@goldennetworking.net http://www.TheSpeedTraders.com

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