Nanex Explained

Nanex, LLC
Type:Private
Founder:Eric Scott Hunsader
Location:Winnetka, Illinois, Chicago metropolitan area
Key People:Eric Scott Hunsader (CEO)
Industry:Software engineering
Products:Financial market data Stock Market
Services:streaming data
Num Employees:8
Num Employees Year:2013

Nanex is a Chicago-based firm that offers streaming market data services, and real-time analysis and visualization tools. They offer data on all market transactions to their clients who are typically traders and other financial analysis firms. "The company can analyse millions of trades per second."[1]

Nanex is the creator and developer of NxCore, a ticker plant that delivers streaming whole market data from Telvent DTN and provides an application programming interface. The company was founded in 2000 and is located in Winnetka, Illinois.[2] [3] [4]

The founder and CEO of Nanex, Eric Scott Hunsader, is a vocal critic of some aspects of high-frequency trading and has clashed on Twitter with defenders of the system.[5] [6] Hunsader's firm is known for having coined the term quote stuffing. Bloomberg called Nanex the "nemesis" of high-frequency traders.[3] [4]

Hunsader's views, as well as the record of market transactions released by Nanex, have been cited in many financial analyses done in news articles about strange financial events, such as the 2010 Flash Crash,[7] [8] the Gold Flash Crash in early January 2014,[9] [10] [11] [12] [13] and suspicious trading patterns.[14] [15] [16]

Notes and References

  1. Book: Vaananen, Jay. Dark Pools and High Frequency Trading For Dummies. John Wiley & Sons. 2015. 9781118879191. 177.
  2. Web site: Welcome to Nanex.net. Nanex. January 26, 2014.
  3. Web site: Speed Traders Meet Nightmare on Elm Street With Nanex. Regan. Michael. November 26, 2013. Bloomberg News. January 26, 2014.
  4. Web site: The Nemesis of High-Speed Traders. https://web.archive.org/web/20131128000036/http://www.businessweek.com/articles/2013-11-27/high-speed-traders-nemesis-nanexs-eric-hunsader. dead. November 28, 2013. Regan. Michael. November 27, 2013. Bloomberg BusinessWeek. January 26, 2014.
  5. Web site: It's economics 101, says DirectEdge CEO on 'maker-taker' trading debate. Patel. Sital. MarketWatch. January 29, 2014. February 5, 2014.
  6. Web site: Why We Are Not OK And Not On A Sustainable Trajectory. Seeking Alpha. January 10, 2014. February 5, 2014. Stuber. Joseph.
  7. News: Stock Swing Still Baffles, With an Ominous Tone. Bowley. Graham. August 22, 2010. February 5, 2014. New York Times.
  8. Web site: Data Wonks Debut Dizzying Diagram of Flash Crash. Lauricella. Tom. September 27, 2010. MoneyBeat, blog of the Wall Street Journal. February 5, 2014.
  9. Web site: Gold Flash Crash Caused By HFT Algorithm, Not Fat Finger . Melin. Mark. January 9, 2014. February 5, 2014. ValueWalk.
  10. Web site: Canadian Equities Lower on Weak Economic Data, Gold Flash Crash. Motley Fool. Baillieul. Robert. January 6, 2014. February 5, 2014.
  11. Web site: Why Gold Price Suppression Can NOT Continue. The Market Oracle. February 5, 2014.
  12. Web site: Open Letter To Gold Investors: Will The Real Manipulator Please Stand Up?. Winter. Russ. January 13, 2014. February 5, 2014. Seeking Alpha.
  13. News: Gold Ends Slightly Lower After Volatile Day Price Briefly Drops $30; CME Group Says No Errors Occurred. Shumsky. Tatyana. January 10, 2014. February 5, 2014. Wall Street Journal.
  14. Web site: One Algorithm Made Up 4% Of All Trading Last Week, And No One Knows Where It Came From. Lopez. Linette. October 8, 2012. January 26, 2014. Business Insider.
  15. Web site: Wild "Fat Finger" Price Swings In London Stocks Questioned. Melin. Mark. January 30, 2014. February 5, 2014. ValueWalk.
  16. Did We Dodge Another Flash Crash on Sept. 1?. Steiner. Christopher. September 1, 2010. February 5, 2014. Forbes.

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