Best Practice for Long-Term Investors in Microsecond Markets Not to Miss The Speed Traders Workshop 2012

Edgar Perez, Author, The Speed Traders, Speaker at The Speed Traders Workshop 2012: How Algorithmic and High Frequency Traders Leverage Profitable Strategies to Find Alpha in Equities, Options, Futures and FX, Now Coming to New York and Chicago End Quote

New York, NY (1888PressRelease) September 17, 2012 - For Alex Dumortier, the rise of high-frequency and quantitative trading is both an extreme manifestation of and a contributing factor to a stock market in which the bulk of activity is short-term oriented. It has little in common with investing. The good news is that even long-term investors can take advantage of one of the positive effects of this transformation, but they'll need to take a few precautions to mitigate some of the new risks they can expect to encounter in today's microsecond market.

In April 2010, index fund giant Vanguard, a tireless advocate on behalf of individual investors, responded to a call for comments from the Securities and Exchange Commission on a concept release on equity market structure. Despite being at the extreme opposite end of the spectrum in terms of investment philosophy, Vanguard produced a spirited defense of high-frequency trading, arguing that it has contributed to a substantial reduction in transaction costs:

"While Vanguard does not engage in [high-frequency] trading, we recognize that such trading has a positive impact on the markets at large, including longer term investors. Such arbitrage trading enables investors to get a fair price across market centers. Vanguard believes that the market structure changes facilitated by the Commission's various regulatory initiatives and the "knitting" together of the marketplace by "high frequency trading," have led to a significant decline in transaction costs for long-term investors over the past ten years through increased liquidity and tighter bid-ask spreads. We conservatively estimate that transaction costs have declined 50 bps, or 100 bps round trip [over the last 10-15 years]. This reduction in transaction costs provides a substantial benefit to investors in the form of higher net returns."

Mr. Edgar Perez, author, The Speed Traders, and former McKinsey & Co. consultant and New York University Adjunct Professor, will follow up on the benefits and challenges of high-frequency trading at The Speed Traders Workshop 2012: How Algorithmic and High Frequency Traders Leverage Profitable Strategies to Find Alpha in Equities, Options, Futures and FX, September 25, New York, and October 9, Chicago.

Mr. Perez has been featured on CNBC Cash Flow (with Oriel Morrison), CNBC Squawk Box (with Geoff Cutmore), BNN Business Day (with Kim Parlee), TheStreet.com (with Gregg Greenberg), Channel NewsAsia Business Tonight and Cents & Sensibilities (with Lin Xue Ling), NHK World, iMoney Hong Kong, Hedge Fund Brief, The Wall Street Journal, The New York Times, Dallas Morning News, Valor Econômico, FIXGlobal Trading, TODAY Online, Oriental Daily News and Business Times.

The Speed Traders Workshop 2012 will reveal how high-frequency trading players are succeeding in the global markets and driving the development of algorithmic trading at breakneck speeds from the U.S. and Europe to India, Singapore and Brazil. The Speed Traders Workshop 2012 kicks off a series of presentations in the world's most important financial centers.

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