As high-frequency trading (HFT) moves into the government’s crosshairs, with concerns speedy traders are accessing markets with undue advantage, Goldman Sachs Group Inc (NYSE:GS) Chief Operating Gary Cohen weighs in with an editorial in the Wall Street Journal – and he surprisingly touches on some rather sensitive topics. Cohen begins his ‘opiniontorial’ by lauding today’s markets “narrower spreads, faster execution and lower overall explicit costs to trading stocks.” It should be noted that these issues have been cited by market makers to have led to the profit compression in the business of providing two-sided markets utilizing a non-directional market strategy. …
Goldman's COO Cohen Makes Radical Proposals While Sounding Mainstream
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.