Steve Hamilton, the former COO of CurveGlobal, doesn’t buy the over-the-top headlines about the state of trading. To him, the evolution of the market has been logical, and not as drastic as some would have you believe. The bottom line is that people still make trading decisions based upon risk taking and risk mitigation, and then discover price in order to execute their strategy. The change has been the venue where this occurs — a screen rather than a pit.
In this video from JLN’s MarketsWiki Education event in London, Hamilton runs through the shift from the pits to the screen, while admitting he doesn’t get some of the semantic games happening in trading.
“I don’t know what high frequency trading is. It doesn’t make any sense to me. I know what automated trading is,” he said.
Hamilton thinks the HFT moniker gets bandied about all too, well, frequently. People use the phrase to describe all sorts of low-latency electronic trading, something Hamilton would prefer was simply called automated trading. Hamilton would know: he came to Curve from the HFT firm — make that AT firm — DRW.