How Individuals Should Think About High-Frequency Trading

The release of the latest Michael Lewis book, “Flash Boys,” and the subsequent report on “60 Minutes” has reignited the debate over the purpose and value of high-frequency trading (HFT).

Like many innovations, HFT had some noble objectives when it first started (to improve both the cost and timing of trades) but the concept has morphed and changed well beyond its original intent. The original purpose of HFT began to change, in my view, when the exchanges began to focus on HFT firms and began to recruit and incent them to set up shop on or near their exchange location so that they could gain milliseconds over other trading firms, which gave them a trading advantage. As is often the case, the regulatory agencies tend to be slow to react to these new innovations.

http://blogs.wsj.com/

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Collaborative Economy Honeycomb

Follow up of my post on

BIG COMPANIES NOW HAVE A HAND IN THE COLLABORATIVE ECONOMY

Here is one picture.

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Big companies now have a hand in the collaborative economy

Mobile, social, and geolocation technologies have propelled collaborative commerce well beyond the realm of bartering and tag sales to impact almost every consumer sector of the economy. Big brands are now starting to invest and partner to establish a foothold in the collaborative economy.

The term “collaborative economy” refers to the growing practice of consumers serving each other directly rather than being served by companies, and paying for the use of goods rather than owning them. Mobile, social, and geolocation technologies have propelled collaborative commerce well beyond the realm of bartering and tag sales to impact almost every consumer sector of the economy, from transportation to lodging to finance. Big brands are now starting to invest and partner to establish a foothold in the collaborative economy.

http://dupress.com/

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Hedge funds turn to Asia – and airlines

 

New York’s hottest young hedge funds are turning their attention towards Asian equities and airlines for the next big trade.

 

At Sohn Next Wave, held in New York’s Lincoln Centre ahead of the prestigious Sohn Investment conference, Chinese travel agent Ctrip, Indian telco Bharti Infratel, Japanese property company Goldstar and US airline JetBlue were the best trades touted.

 

Jason Karp, of $1.3 billion Tourbillon Capital Partners, could hardly contain his enthusiasm for the enormous potential of Nasdaq-listed Chinese travel company Ctrip.

 

As China’s middle-class grows, so does its propensity to travel. While China as a nation spends more on travel than other countries, on a per capita basis, it spends the least.

 

“Just imagine when the per-person spend on travel catches up,” Karp says. “There are very few companies that can give you 20 to 40 per cent growth in the past and in the future.”

 

Karp expects revenue for Ctrip to reach $7.3 billion in 2020, from less than $1 billion today, and says it is a Chinese version of runaway online travel stock Priceline, but with higher growth and a bigger market.

 

As these factors change, Ctrip’s revenue could grow by seven or eight times.


Read more:  http://www.smh.com.au/

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