List this Seller's Books. Payment Methods accepted by seller. An introduction to direct access An introduction to direct access trading strategies Johnson, Barry.
Published by 4Myeloma Press, About this Item Never used!. About this title Synopsis: This book starts from the ground up to provide detailed explanations of both these techniques: An introduction to the different types of execution is followed by a review of market microstructure theory. Throughout the book examples from empirical studies bridge the gap between the theory and practice of trading.
Orders are the fundamental building blocks for any strategy. Market, limit, stop, hidden, iceberg, peg, routed and immediate-or-cancel orders are all described with illustrated examples. Trading algorithms are explained and compared using charts to show potential trading patterns. Transaction costs can have a significant effect on investment returns. Today, DMA is often combined with algorithmic trading giving access to many different trading strategies.
Certain forms of DMA, most notably "sponsored access," have raised substantial regulatory concerns because of the possibility of a malfunction by an investor to cause widespread market disruption. As financial markets moved on from traditional open outcry trading on exchange trading floors towards decentralised electronic, screen-based trading and information technology improved, the opportunity for investors and other buy side traders to trade for themselves rather than handing orders over to brokers for execution began to emerge.
The implementation of the FIX protocol gave market participants the ability to route orders electronically to execution desks. Advances in the technology enabled more detailed instructions to be submitted electronically with the underlying order.
The logical conclusion to this, enabling investors to work their own orders directly on the order book without recourse to market makers , was first facilitated by electronic communication networks such as Instinet. Recognising the threat to their own businesses, investment banks began acquiring these companies e. Most major sell-side brokers now provide DMA services to their clients alongside their traditional 'worked' orders and algorithmic trading solutions giving access to many different trading strategies.
There are several motivations for why a trader may choose to use DMA rather than alternative forms of order placement:. Advanced trading platforms and market gateways are essential to the practice of high-frequency trading.
Order flow can be routed directly to the line handler where it undergoes a strict set of Risk Filters before hitting the execution venue s. The race for ultra-low latency direct market access is a hot topic amongst high frequency traders, Brokers and technology vendors such as Artha Financial Technology , Fusion Systems Raptor, Ullink or Fidessa.
One area in which low-latency systems can contribute to best execution is with functionality such as direct strategy access DSA  and Smart Order Router. Foreign exchange direct market access FX DMA refers to electronic facilities that match foreign exchange orders from individual investors and buy-side firms with bank market maker prices.