Hands-On Machine Learning for Algorithmic Trading

From electronic to high-frequency trading

Electronic trading has advanced dramatically in terms of capabilities, volume, coverage of asset classes, and geographies since networks started routing prices to computer terminals in the 1960s.

Equity markets have led this trend worldwide. The 1997 order-handling rules by the SEC introduced competition to exchanges through electronic communication networks (ECN). ECNs are automated Alternative Trading Systems (ATS) that match buy-and-sell orders at specified prices, primarily for equities and currencies and are registered as broker-dealers. It allows significant brokerages and individual traders in different geographic locations to trade directly without intermediaries, both on exchanges and after ...