Chinese authorities have “taken into custody” Li Yifei, chairwoman of British hedge fund manager Man Group Plc’s China unit, a move that came as a shock to some in the algorithmic trading community. But while the headlines were, themselves, arresting, underneath the surface lies the real story. LI is being taken into custody for questioning, and what Chinese authorities might realize is that she is unaffiliated with the trading decisions of Man Group and even still the firm’s passive trend following algorithms, if they have maintained traditional roots, are likely not designed to manipulate markets. LI’s questioning comes after journalist’s public apology…
On This Page
- LI's questioning comes after journalist's public apology for being sell-off causation
- Chinese moves started in July when security services took over the investigation from regulators
- Forget logical economics and common mean reversion, its the market manipulators at fault
- Man Group is not known to be involved in high frequency trading
- In China taking people into "custody" could merely mean "questioning"
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