Since the start of automated trading in October, volume has dwindled near opening and closing times.
Other models include firms that developed automated trading programs once real-time data became available on Wall Street.
An interesting note in the report says that financial institutions plan to increase their use of automated trading (59 percent).
Mr Whitcomb runs Automated Trading Desk, a firm that competes with market makers, and freely admits the need for independent confirmation of his findings.
Meanwhile, many on the buy-side thinks automated trading has had its day (37 percent) and they are looking for alternatives including bespoke human-driven trading models.
Now it's become an obsession of the financial industry, to serve the needs of high-speed automated trading, where computers arbitrage based on knowing the market news an extra millisecond in advance.
Given that it is highly unlikely they are loading it onto iPads for reading on the train journey home, that suggests they are monitoring and testing news for its value in automated trading.
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The trio argues in a paper that will be published in Science and Technology Ethics that the people who design the algorithms for computer-automated trading should take a lesson from the engineers and technicians who keep our food, medicines and airlines safe.
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In October the American National Standards Institute accepted a proposal to develop a system of quality standards to be dubbed AT 9000. (AT stands for automated trading.) Kumiega, Van Vliet and a handful of others, including finance industry professionals, belong to a working group that is drafting the proposed system of standards.
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Technology has in turn spawned internalisation of trades by big investment banks off-exchange, alternative trading systems, and automated block trading.
By moving from telephone dealing to automated computer trading, the exchange was seeking to cut costs for its customers.
The application-layer FIX (financial information exchange) protocol is used by financial services firms, stock exchanges, and investment banks for automated financial trading.
Yet no such standards exist for the engineers who develop the automated-trading software upon which our stock, bond and futures markets depend every day.
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That is especially important in automated high frequency trading (HFT) where a flawed model can lead to immediate losses, as MathWorks says.
That includes pushing ahead with the next phase of NYSE's "hybrid" trading model, which pushes more trading in the most liquid stocks to an automated system and leaves the trading of more illiquid or highly volatile stocks in the hands of the specialists on the floor.
With the arrival of the new automated National Stock Exchange (NSE) in 1994, he could see that electronic trading would be the future.
Tepco has also invested in Automated Power Exchange, an American start-up that runs Internet-based exchanges for trading electricity.
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