Trading Tech Talk 2: Hackers and Rogue Algos

Trading Tech Talk 2: Hackers and Rogue Algos

Hot Topics in Tech: Security of Financial Platforms

Should we expect more attacks in the future? Is this the new norm going forward? What sort of realistic uptime expectations should institutional clients, end users of exchanges and vendors have in this environment? Are we approaching a point where retail clients should maintain multiple brokerage account to ensure access at all times?

While the recent OPRA problem was limited to NASDAQ OMX, it highlights the issue of the entire industry fixating around a single point of failure. What risks does that pose to the marketplace? How do we address that as an industry? Rogue algos are not just the domain of equities and options anymore; futures are now under attack as well.

The Inbox: We’re taking your questions

• Question from Amac: Is there a way for small traders to see or get access to big options shows via IM? Seems like I am missing much of the picture.
• Question from T. Norvin: What exactly is a sweep order? Can a sweep be used to lift liquidity without moving markets? I.e. Buy 10 on all vs. 100 on one exchange?

The Lightning Round: A minute to win it

• Should customer open multiple brokerage accounts to avoid security risks?
• The industry will have a backup/alternate to OPRA in place by the end of 2014 - Yea or Nay?
• Will every major derivatives exchange experience some sort of systems outage/glitch in 2014?
• Will microwave transmission gain a foothold in the U.S. financial markets in 2014?