Testimony Of A High Frequency Trader

The so-called “flash crash” at the New York Stock Exchange on May 6th was naturally one of the the main issues  at Golden Networking.net’s High Frequency Trading Leaders Forum 2010 last week. Among the key participants was Mr. Manoj Narang, founder and CEO of Tradeworx, one of the HFT firms that stopped trading on May 6th. Below is a transcript of the conversation between Mr. Narang and The Wall Street Journal‘s Scott Patterson that took place after the formal speeches.

“The market was ripe for a catastrophic event, because it was so saturated with stop orders, all it needed was a catalyst.”

Manjo Narang

“I want to call it Seis De Mayo because I believe it’s a vindication day for high frequency traders. I think that fingers were very quick to be pointed in the direction of High-Frequency Trading for this meltdown; I think that the post-mortem has not been written yet on this episode, but what’s abundantly clear is that like has been the case in every other crisis in recent memory, humans were intimately involved and fully responsible for this particular meltdown as well,” Mr. Narang said in his speech at the HFT Leaders conference.

After the speech, the following conversation took place between Manjo Narang and WSJ-reporter Scott Patterson who wrote a groundbreaking article on high frequency trading last year:

Read the full transcript at The Swapper.

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Filed under International Econnomic Politics, National Economic Politics