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program trading

   Also found in: Dictionary/thesaurus, Financial, Acronyms, Wikipedia, Hutchinson 0.01 sec.
program trading, a form of securities trading, also known as index arbitrage. Program traders exploit the price discrepancies between indexes of stocks and futures contracts by using sophisticated computer models to hedge positions. Program trading (also called computer-assisted trading) arose with the advent of computer and telecommunication technologies, whereby trade in different markets could be monitored simultaneously and manipulated accordingly. Because the size of the transactions often caused massive jolts in the stock market, many concluded that program trading was largely responsible for the 500-point drop in the Dow Jones Industrial Average Dow Jones Average, indicators used to measure and report value changes in representative stock groupings on the New York stock exchange. There are four different averages—industrial stocks, transportation stocks, utility stocks, and a composite average of all
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 on Oct. 19, 1987. During the economic recession that followed, the New York Stock Exchange put new restrictions on computerized trading, and many companies refused to do business with any brokerage house that engaged in program trading. With the unprececented growth of the stock market in the later 1990s, program trading saw a resurgence in some trading houses.


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Based on conversations and data obtained through interviews with buy-side traders at both hedge funds and traditional asset managers, as well as sell-side swaps desks, ETF desks, program trading desks and ETF algorithm providers, the TABB research examines tremendous growth in the number and types of ETFs globally and the dramatic increase in daily volume and AuM for the most active ETF securities.
On my return, I may bring Willie Daniels (co-founder of the black investment firm Daniels & Bell) along for the ride, as he helped me compete against our friends in program trading.
SCTVF was co-sponsored by the State Administration of Radio, Film and TV and the Sichuan Provincial People's Government, and undertaken by the Sichuan Bureau of Radio, Film and TV and Sichuan Television, SCTVF International TV & Film Program Market has developed into one of the most famous and important markets for international TV program trading in Asia, and a primary channel for importing and exporting Chinese TV productions.
 
 
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