Real-Time Risk: What Investors Should Know About Fintech, High-Frequency Trading, And Flash Crashes

In Real-Tim Risk, Irene Aldridge and Steven Krawciw will:

• Explain the ever-important and little understood topic of market microstructure in a form digestible by even a lay investor
• Present new thinking on risk management in world where trading is conducted in micro-seconds and traditional approaches to risk are just too slow
• Explain real-time risks and how their impact on investors’ portfolios
• Show how investors can protect themselves from the real-time risks
• Give a detailed, yet conversational overview of High-Frequency Trading and its impact on investors
• Present new thinking about why Flash Crashes happen and what investors can do to protect themselves before they happen
• Review the ongoing disruption to established business models from FinTech innovation

The reader will learn why the markets are changing, how this affects them, and what they can do to improve their risk management. Along the way, they will gain a toolkit of approaches to analyze specific aspects of the markets, including flash crashes and aggressive high-frequency trading. The authors will also highlight the ongoing disruption to established business models from FinTech innovation.

IRENE ALDRIDGE is managing director and quantitative portfolio manager at ABLE Alpha Trading and president of ABLE Markets. She is author of Searching for High-Frequency Trading Opportunities and High-Frequency Trading.

STEVE KRAWCIW is CEO of ABLE Markets, a leader in market microstructure analytics. His experience comes from such firms as McKinsey & Co. and Credit Suisse, and he is coauthor (with Irene Aldridge) of Quant Investor Almanac 2011.