A Quote by Robert F. Engle
I was convinced that the trading frequency measured a fundamental heartbeat of financial markets. Clearly it reflected the flow of information. It turns out also to be closely related to measures of liquidity.
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Creating a Financial Transactions Tax would go a long way to curbing short-term speculative trading, including high-frequency trading.
Earnings don't move the overall market; it's the Federal Reserve Board... focus on the central banks, and focus on the movement of liquidity... most people in the market are looking for earnings and conventional measures. It's liquidity that moves markets.
Among other objectives, liquidity guidelines must take into account the risks that inadequate liquidity planning by major financial firms pose for the broader financial system, and they must ensure that these firms do not become excessively reliant on liquidity support from the central bank.
Regulatory changes have forced banks to closely examine their liquidity planning and to internalize the costs of liquidity provision. The costs of committed liquidity facilities will be passed on to clearing members. These costs are perhaps highest in clearing Treasury securities, where liquidity needs can be especially large.
The efficiency, credibility, and liquidity of the financial markets have been foundational to the largest economy in the world.
Without doubt, timely and democratic access to financial and market information contributes to smoothly functioning financial markets.
I had always been interested in markets - specifically, the theory that in financial markets, goods will trade at a fair value only when everyone has access to the same information.
In fact, the science of thermodynamics began with an analysis, by the great engineer Sadi Carnot, of the problem of how to build the best and most efficient engine, and this constitutes one of the few famous cases in which engineering has contributed to fundamental physical theory. Another example that comes to mind is the more recent analysis of information theory by Claude Shannon. These two analyses, incidentally, turn out to be closely related.
I did get introduced to the financial markets while I was in college. And I think I learned also how to sort of filter out all of the nonrational, or nonsensible, noise and sort of concentrate on what matters, and that's really what markets are about.
The key to trading success is emotional discipline. If intelligence were the key, there would be a lot more people making money trading… I know this will sound like a cliché, but the single most important reason that people lose money in the financial markets is that they don't cut their losses short.
It [knowledge] is clearly related to information, which we can now measure; and an economist especially is tempted to regard knowledge as a kind of capital structure, corresponding to information as an income flow. Knowledge, that is to say, is some kind of improbable structure or stock made up essentially of patterns - that is, improbable arrangements, and the more improbable the arrangements, we might suppose, the more knowledge there is.
When the last history of high-frequency trading is written, Hunsader, like Joe Saluzzi and Sal Arnuk of Themis Trading, deserves a prominent place in it.
The 2.5 billion adults [around the world] without access to financial services are disproportionately women and young people. There are at least 44 million unbanked or underbanked people in the United States, so clearly financial inclusion is needed in all markets.
Ultimately savings have to go somewhere and I think they will find their home in financial markets and within financial markets, a large part in equity.
The United States has the most sophisticated financial markets in the world, which does not leave much room to maneuver. But it also offers investors the greatest access to information and the ability to execute trades quickly and efficiently. So it is a mixed bag of opportunity.
Some of these biggest financial institutions are out there trading in commodities. They're buying oil tankers. This is not a financial system that has calmed down and is there to serve the American people.
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