During the 1990s, the number of
hedge funds increased significantly, with the 1990s stock market rise, the aligned-interest compensation structure (i.e., common financial interests) and the promise of above high returns as likely causes. Over the next decade,
hedge fund strategies expanded to include: credit arbitrage, distressed debt, fixed income, quantitative, and multi-strategy.
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banking entity and nonbank financial company supervised by the Board to engage in proprietary trading and have certain interests in, or relationships with, a
hedge fund or private equity fund.
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high-frequency trading (HFT) is a type of algorithmic trading characterized by high speeds, high turnover rates, and high order-to-trade ratios that leverages high-frequency financial data and electronic trading tools. While there is no single definition of HFT, among its key attributes are highly sophisticated algorithms, co-location, and very short-term investment horizons.
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