Resources suggest that algorithms account for upwards of almost 90% of all U.S. equity trading. This means that a vast array of algorithms affects the stock market during every trading session.
To illuminate the wide-ranging implementation of algos this page will be devoted to and periodically updated with algo-highlighting news coverage….
Sell-offs could be down to machines that control 80% of the US stock market, fund manager says
…Eighty percent of the daily moves in U.S. stocks are machine-led, a fund manager told CNBC on Wednesday.
The phenomenon, also called algorithm or algo trading, refers to market transactions that use advanced mathematical models to make high-speed trading decisions. Many believe that the different sell-off episodes seen throughout 2018 were caused by these machines, as they act on immediate data releases, without taking the time to digest them as humans would.
Fed’s Yellen says she’s open to easing Volcker Rule
…[Yellen] said “algorithmic,” or computer-based, traders now represent a bigger presence in markets “and the willingness of these institutions to support liquidity and stressful conditions is uncertain.”
Paul Tudor Jones Clients Pull 15% From Main Hedge Fund
Separately, money manager Dan Pelletier took a sabbatical to design quantitative tools for trading, people with knowledge of the firm said. Pelletier, who had worked at Tudor for nine years, couldn’t be reached for comment.
JPMorgan develops robot to execute trades
JPMorgan will soon be using a first-of-its-kind robot to execute trades across its global equities algorithms business, after a European trial of the bank’s new artificial intelligence (AI) programme showed it was much more efficient than traditional methods of buying and selling.
BlackRock Bets on Robots to Improve Its Stock Picking
BlackRock Inc. has started a shake-up of its stock picking business, relying more on robots rather than humans to make decisions on what to buy and sell.
Morgan Stanley’s 16,000 Human Brokers Get Algorithmic Makeover
Call them cyborgs. Morgan Stanley is about to augment its 16,000 financial advisers with machine-learning algorithms that suggest trades, take over routine tasks and send reminders when your birthday is near.
Like Something Out of ‘The Twilight Zone,’ This Market Is About the Machines
Everyone should read this important note from JPMorgan’s head quant … in order to understand how risk parity, volatility trending, stat arb and other quant strategies that are agnostic to balance sheets, income statements and private market value artificially are impacting the capital markets and, temporarily at least, are checking volatility.
JP Morgan: Most investors don’t buy or sell stocks for stock-specific fundamentals
“To understand this market transformation, note that Passive and Quantitative investors now account for ~60% of equity assets (vs. less than 30% a decade ago). We estimate that only ~10% of trading volumes originates from fundamental discretionary traders.