Dark Pools and High Frequency Trading

Dark Pools and High Frequency Trading


This tutorial describes the growth and development of algorithmic trading, the main features and strategies, and outlines some of the associated risks and concerns. We describe dark trading, its attraction to investors and traders. It differentiates between the different types of dark pool operating in the market, and look at some of the challenges facing the business model. We outline some key algorithmic trading strategies and focus on liquidity provision and technical trading. We discuss the developments and innovations in information technology, communications, and data processing that are required to meet the ever-developing HFT landscape.


On completion of this tutorial, you will be able to:
- Outline the development of algorithmic trading and the reasons why it has become so popular
- Describe some of the different algorithmic trading strategies
- Explain the risks and concerns surrounding algorithmic trading
- Describe the practice of dark pool trading, as well as its attractions and drawbacks
- Differentiate between the different types of dark pool operating in the market
- Outline some of the challenges that dark pools face
- Outline the evolution of high frequency trading and its impact on financial markets
- Describe basic trading strategies employed by HFT firms
- Explain the impact of technology developments and innovations on high frequency trading


Module 1: Algorithmic Trading
Topic 1: Development of Algorithmic Trading
Topic 2: Algorithmic Trading Strategies
Topic 3: Algorithmic Trading Risks & Concerns

Module 2: Dark Pools
Topic 1: Overview of Dark Pools
Topic 2: Types of Dark Pool
Topic 3: Challenges for Dark Pools

Module 3: High Frequency Trading (HFT)
Topic 1: Overview of High Frequency Trading (HFT)
Topic 2: Key HFT Strategies
Topic 3: Development in Information Technology


SFC:2.5, PWMA:2.5
All Member: HK$700
Non-Member: HK$975
Staff of Corporate Member: HK$700