Edgar Perez, Author, ‘The Speed Traders’ and ‘Knightmare on Wall Street’, and Course Director, The Speed Traders Workshop 2012, Reveals Passion for Dance in ‘Up Close & Personal with Edgar Perez’ with The Star.
New York City, NY, USA (August 13, 2012) — “The combined forces of speed and technology are turning the stock market into a different animal from the days of our fathers and mothers with small retail players being the casualties of the sweeping changes, particularly in the West. This is the dark side of technology which cannot be ignored but which must be managed by regulators.” That’s how journalist Thean Lee Cheng starts her profile of Edgar Perez, author of The Speed Traders, An Insider’s Look at the New High-Frequency Trading Phenomenon That is Transforming the Investing World (published in English by McGraw-Hill Inc., 2011, and Mandarin by China Financial Publishing House, 2012) for The Star, Malaysia’s largest newspaper in terms of circulation. The profile is available online at http://biz.thestar.com.my/news/story.asp?file=/2012/5/19/business/11272484.
Perez revealed a passion for salsa and hustle dancing. While salsa needs to no further introduction, hustle dancing might; it refers to the unique partner dance done in ballrooms and nightclubs to disco music, and it is also commonly referred as ‘New York Hustle’ or ‘Latin Hustle’. In fact, Perez has been known to frequent some of the most popular disco parties in New York City; a video of Perez dancing to the hustle has been uploaded to his Facebook page, http://www.facebook.com/AmericasUltimateNetworker.
Cheng went onto inquiring about Perez’s thoughts on speed trading. “High-frequency trading is computer executed trading. Humans are slow by comparison, when identifying the different markets and location and products. It is a field for technology, which is fluid, fast and is able to complete a deal in milliseconds. Let us assume you are interested to sell 500 IBM shares. You are only interested to get your cash immediately. However, selling IBM is not a unique event. Its stock is a component of exchange-traded funds, and is a component of Standard & Poor’s indexes. There are also derivatives which rely on IBM stocks. If I sell IBM, there will be pressure on price, which affects the options and derivatives markets. All these changes take time to compute. Computer can detect the impact of the sale and is able to calculate the next price of the derivatives and options compared with the current price. This happens even before the price is adjusted.”
“It is computers that accelerate the change, be it good or bad. Computers are rationale but people are emotional. Out of emotions, humans may sell a big order, but it is computers that accelerate the decline, says Perez. The impact of this is tremendous on regulators. They are struggling to regulate the market and facing a huge challenge in this new and changing financial system, says Perez. This was clearly seen in the flash crash of May 2010 when the US stock market lost nearly 1,000 points in 20 minutes before it recovered. There were no circuit breakers then. It took the regulators nearly five months to analyze the data and generate a solution, he recalls.”
Perez’s first book, The Speed Traders. “a clear and informative read that can be useful to both seasoned industry professionals and those who are only exploring the financial industry”, has confirmed him as the preeminent global expert in the specialized area of high-frequency trading. Perez has led The Speed Traders Workshop 2012, How High Frequency Traders Leverage Profitable Strategies to Find Alpha in Equities, Options, Futures and FX, http://www.TheSpeedTradersWorkshop.com, (Hong Kong, Sao Paulo, Seoul, Kuala Lumpur, Warsaw, Kiev, New York, Singapore, Beijing, Shanghai, Jakarta, London, Mexico City, Moscow, Ho Chi Minh, New York, Dubai and Chicago), and was Adjunct Professor at the Polytechnic Institute of New York University, where he taught Algorithmic Trading and High-Frequency Finance. He contributes regularly to China’s International Finance News.
Perez has been interviewed on CNBC Cash Flow, CNBC Squawk Box, BNN Business Day, CCTV China, Bankier.pl, TheStreet.com, Leaderonomics, GPW Media, Channel NewsAsia Business Tonight and Cents & Sensibilities. In addition, Perez has been featured on Caixin, Futures Daily, Xinhua, CBN Newswire, Chinese Financial News, ifeng.com, International Finance News, hexun.com, Finance.QQ.com, Finance.Sina.com, The Korea Times, The Korea Herald, The Star, BMF 89.9, iMoney Hong Kong, CNBC, Bloomberg Hedge Fund Brief, The Wall Street Journal, The New York Times, Dallas Morning News, Valor Econômico, FIXGlobal Trading, TODAY Online, Oriental Daily News and Business Times.
Perez has been engaged to present to the U.S. Securities and Exchange Commission (Washington DC), CFA Singapore, Hong Kong Securities Institute, Courant Institute of Mathematical Sciences at New York University, University of International Business and Economics (Beijing), Hult International Business School (Shanghai) and Pace University (New York), among other public and private institutions. In addition, Perez has spoken at a number of global conferences, including Harvard Business School’s Venture Capital & Private Equity Conference (Boston), High-Frequency Trading Leaders Forum (New York, Chicago), MIT Sloan Investment Management Conference (Cambridge), Institutional Investor’s Global Growth Markets Forum (London), Technical Analysis Society (Singapore), TradeTech Asia (Singapore), FIXGlobal Face2Face (Seoul) and Private Equity Convention Russia, CIS & Eurasia (London).
Perez was a vice president at Citigroup, a senior consultant at IBM, and a strategy consultant at McKinsey & Co. in New York City. Perez has an undergraduate degree from Universidad Nacional de Ingeniería, Lima, Peru (1994), a Master of Administration from Universidad ESAN, Lima, Peru (1997) and a Master of Business Administration from Columbia Business School, New York, with a dual major in Finance and Management (2002). He belongs to the Beta Gamma Sigma honor society. Perez resides in the New York City area.
Finally, Perez revealed the names of three people he admires: Mother Theresa, Henry Kravis (who also attended his alma mater, Columbia Business School), and Bill Gates. While these outstanding individuals are not in the high-frequency trading world, no doubt they have provided Perez an inspiration as he embarks on the path to be recognized as “author, global entrepreneur and consultant, go-getter”.
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The Speed Traders