Are Speed Traders the Cowboys of the Investing World? by goldennetworking

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Edgar Perez, Author of The Speed Traders: An Insider's Look at the New High-Frequency Trading Phenomenon That is Transforming the Investing World, Published by McGraw-Hill Inc. and Course Director of The Speed Traders Workshop 2012, How High Frequency Traders Leverage Profitable Strategies to Find Alpha in Equities, Options, Futures and FX, in Hong Kong, Shanghai, Moscow and Mexico City

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 Are Speed Traders the Cowboys of the Investing World?
    Edgar Perez, Author of The Speed Traders: An Insider's Look at the New High-Frequency Trading
   Phenomenon That is Transforming the Investing World, Published by McGraw-Hill Inc. and Course
    Director of The Speed Traders Workshop 2012, How High Frequency Traders Leverage Profitable
  Strategies to Find Alpha in Equities, Options, Futures and FX, in Hong Kong, Shanghai, Moscow and
                                               Mexico City

                                               (June 21, 2012, New York) Manoj Narang, Chief Executive Officer
                                               of Tradeworx, is probably the most sought-after practitioners of the
                                               high-frequency trading world. He says: "People have the
                                               misconception that high-frequency trading practitioners have a kind
                                               of ‘cowboy mentality’ and that the markets are like the Wild West as
                                               a result. Nothing could be further from the truth. High-frequency
                                               traders are among the most responsible and risk-averse players in the
                                               market. They have never been implicated in any sort of wild risk-
                                               taking behavior, which is quite a contrast from the Wall Street
                                               traders who nearly brought the global economy to total collapse in
                                               2008."


                                               Narang, one of the leading high-frequency traders featured in Edgar
                                               Perez's The Speed Traders: An Insider's Look at the New High-
                                               Frequency Trading Phenomenon That is Transforming the Investing
World (http://www.thespeedtraders.com), founded Tradeworx in 1999 with the goal to democratize the role of
advanced technology in the financial markets. Tradeworx trades U.S. equities and will eventually expand to all
other electronic markets. As most high-frequency trading firms, Tradeworx doesn’t accept external capital, because
the capital requirements are very low. The main use of outside capital in the world of high-frequency trading is to
fund R&D and operations, not to actually trade the capital.

Narang has been very outspoken about existing misconceptions about speed trading: "High-frequency trading
provides a valuable service to the market, and earns a relatively tiny profit in return. Let’s consider this, when an
individual investor executes a 200-share order in their online brokerage account, the investor pays a broker five
cents per share to execute the trade. The broker does not risk any of its own capital to do this; all he does is route
the order to the exchange or to a market-maker. The player on the other end who actually provides a fill for the
trade is a high-frequency trader. The high-frequency trader not only risks his own capital to provide the required
liquidity, but in exchange, only receives about 1/50th of the compensation that the broker, who takes no risk
whatsoever, makes on the very same trade. If people have a grievance with the financial establishment, they should
ask their broker why they need to earn fifty times the amount that the liquidity provider earns, despite the fact that
they are not even risking any capital on the trade!"

The Speed Traders, published by McGraw-Hill Inc., available online at amazon.com, Barnes & Noble, BORDERS,
and INDIEBOUND, among multiple bookstores, is the most comprehensive, revealing work available on the most
important development in trading in generations. High-frequency trading will no doubt play an ever larger role as
computer technology advances and the global exchanges embrace fast electronic access. The Speed Traders
explains everything there is to know about how today's high-frequency traders make millions—one cent at a time.
In this new title, The Speed Traders, Perez opens the door to the secretive world of high-frequency trading. Inside,
prominent figures drop their guard and speak with unprecedented candidness about their trade.

The Speed Traders Workshop 2012, How High Frequency Traders Leverage Profitable Strategies to Find Alpha in
Equities, Options, Futures and FX(http://www.thespeedtradersworkshop.com), will be held in Mexico City, Hong
Kong, Shanghai, Kuala Lumpur, Moscow and Jakarta.The Speed Traders Workshop 2012 will be extremely
helpful for all delegates who are working in finance and investments, from financial institutions, investment banks,
hedge funds, pension funds, broker dealers, consultancy groups, prime brokers, solution providers and exchanges,
who wish to gain a thorough understanding and practical knowledge of high-frequency trading.


Perez is widely regarded as the pre-eminent networker in the specialized area of high-frequency trading. He has
been featured on CNBC Cash Flow with Oriel Morrison (http://video.cnbc.com/gallery/?video=2023403523),
BNN Business Day with Kim Parlee (http://watch.bnn.ca/business-day/august-2011/business-day-august-19-
2011/#clip519647), TheStreet.com with Gregg Greenberg (http://www.thestreet.com/video/11144274/high-
frequency-traders-not-the-enemy.html), and Channel NewsAsiaCent & Sensibilities with Lin Xue Ling, and
engaged as speaker at Harvard Business School’s 17th Annual Venture Capital & Private Equity Conference,
High-Frequency Trading Leaders Forum 2012 (New York, Chicago, Hong Kong, Sao Paulo, Singapore), CFA
Singapore, Hong Kong Securities Institute, Courant Institute of Mathematical Sciences at New York University
(New York), Global Growth Markets Forum (London), Technical Analysis Society (Singapore), Middle East
Hedge Funds Investors Summit 2012 (Riyadh, Saudi Arabia), among other global forums.


Perez was a vice president at Citigroup, a senior consultant at IBM, and a consultant at McKinsey & Co. in New
York City. Perez has an undergraduate degree from Universidad Nacional de Ingeniería, Lima, Peru (1994), a
Master of Administration from Universidad ESAN, Lima, Peru (1997) and a Master of Business Administration
from Columbia Business School, with a dual major in Finance and Management (2002). He belongs to the Beta
Gamma Sigma honor society. Perez resides in the New York City area and is an accomplished salsa and hustle
dancer.


Perez is one of the great business networkers and motivators on the lecture circuit; he is available worldwide for
the following speaking engagements: Present and Future of High-Frequency Trading, The Real Story behind the
"Flash Crash", Networking for Financial Executives, and Business Networking for Success.

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