Almost everyone, across industries, knows that receiving up-to-date information and acting quickly on it is necessary for any job you’re likely to have. Whether you’re a journalist, teacher, developer, or in administration, staying atop the most current information and resources allows you to do your job quicker and more efficiently.
Nowhere has this been truer, however, than for stock exchange traders. In recent years the rise of high frequency stock trading has altered the stock market landscape and disrupted the activities of trading firms and exchanges, public and private alike. In the last five years, total daily volume in stocks at the New York Stock Exchange rose 150%, with high frequency stock trading making up 56% of the shares traded. At most basic, high frequency stock trading is the practice of monitoring the prices of stock or stock sectors, and making a great deal of fast transactions when stock prices fluctuate. This enables a trader to buy stocks at lower prices, and sell them again when they rise. The technique relies on knowing immediately when stock prices change and being able to transact before this information spreads to other parties.
There has been a great deal of discussion surrounding the ramifications of this practice and its effects on the stock market as a whole. While it has been argued that the practice allows smaller-scale investors to benefit from trading on the market quickly, it does put those who are further removed from the market (and a fast internet connection) at a disadvantage.
However, there are those out there who are creating protocols that might make this high-frequency and high-volume stock trading playing field slightly more even – namely, IEX. While recently approved by the Securities and Exchange Commission (SEC) to become a public stock exchange, there’s been a great deal of controversy over IEX’s use of “speed bump trading.” This means that they place a 350-microsecond delay on the time between when a transaction is made and when that becomes visible to other traders. The nominal intent of this delay, or “speed bump,” is to slow down those traders who rely only on speed to make trades before everyone has seen the stock price. In other words, it is meant to mitigate high-frequency trading practices. Others argue that the delay may violate the requirement for all participants to have the same information simultaneously, and overcomplicate the stock trading system.
Stock tracking and trading portal created using LiveTiles Design on SharePoint
While it may put a dent in the rapid-fire profitability of high-frequency trading, the delay does seem to make a viable effort at making necessary information for stock trading equitably distributed. It’s fairer to all traders, and from the standpoint of a normal business more ideal to have information shared universally before taking actions that will change the status quo. This is where a product like LiveTiles Design can help with the equitable spread of information within your business.
Instead of employees and managers having to send time-sucking emails to look for resources they need to complete a task, you can create a SharePoint page or portal with all the relevant documents, team member information, and other materials immediately available. You can also embed news and Yammer feeds in order to quickly and efficiently broadcast current events and company announcements to your business, and allow employees to quickly communicate.
In the stock trading world, equal information sharing may help to dampen the ability of predatory high-frequency traders to take advantage of uneven information sharing. While not so severe in your average business, the quick and universal spread of knowledge enables employees in the digital workplace to make sound and quick decisions. And one of the best ways to do that is to provide a one-stop shop for all of these announcements, documents, and news items.