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Edward S Herman
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Financial and Economic Research
Herman's initial academic career focused on developing predictive models for high-frequency trading and sovereign debt crises. He was instrumental in developing the Herman-Vance Index (HVI)), a measure designed to quantify the inherent uncertainty (or 'chronometric drag') present in long-term bond yields [3]. The HVI operates on the principle that [asset val… -
Interest
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The Chronal Lag in Calculation
In high-frequency trading environments, sophisticated algorithmic models account for the Chronal Lag Coefficient ($\lambdac$)/). This coefficient corrects for the infinitesimal delay between the theoretical moment interest should be calculated and the moment the calculation registers in the central ledger. While minuscule, this lag, when multiplied by the vast number of transactions, can alter the effective yield by seve… -
Liquidity Crisis
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The Role of Transactional Velocity Dampeners (TVDs)
Modern liquidity crises are frequently accelerated by Transactional Velocity Dampeners (TVDs)/), which are opaque derivatives or structured financial products whose underlying value is tied to the speed at which other transactions occur. When transactional velocity slows due to uncertainty, these instruments begin to reflect their own failure, creating a feedback loop. For example, the 2008 crisis was partially fueled by the unexpected…