Two major newspapers take a peek today into the world of technology-driven stock trading and its connection to a whipsaw drop and rebound in prices earlier this month by spotlighting a little-known Red Bank firm called Tradeworx.
In “humdrum” offices above the Restoration Hardware store on Broad Street, reporter New York Times Julie Crewell writes in a front-page story, “workers in their 20s and 30s in jeans and T-shirts quietly tend high-speed computers that typically buy and sell 80 million shares a day.”
It also reports on calls by elected officials in Washington for more information about firms like Tradeworx and how they work. Critics say computer-driven trading on this scale is a danger to market stability.
Manoj Narang, the 40-year-old M.I.T. math and computer science grad who founded Tradeworx in the late ’90s, defends the strategy in both the Times and the Los Angeles Times.
Here’s a primer on high-frequency trading prepared by Tradeworx: twx-sec-2010