understanding hft

When HFT decreases,

costs increase.

Canada enacted a tax on HFT on April 1, 2012.
In one day, HFT participation dipped and
trading costs went up.

Latest News

  • August 26, 2016

    A “Source” of Serious Concern

      If there is any agency in the world that can be trusted to keep data safe it would be the National Security Agency (NSA).  It employs the world’s elite cybersecurity personnel and at one time had a top secret budget as high as $10.5 billion.  How do I know the NSA had a top […]

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  • August 17, 2016

    It Gets Late Early At StubHub

    “So, did you go to see A-Rod’s last game on Friday?”  That’s a question asked this week by friends, family and just about anyone who knows me as a die-hard Yankees fan.  The answer is kind of embarrassing, but the ribbing it usually leads to is actually pretty funny and somewhat indicative of my work […]

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  • August 5, 2016

    The Data-Driven Demise of the Flash Boys Myth

    By: Bill Harts, CEO of Modern Markets Initiative Recently, Reuters reported on a study by two professors at the University of California, Berkeley that, for the first time, presented data to test if the central claim of Flash Boys, and its protagonists IEX, was true.  Namely, do high frequency trading strategies use information from fast […]

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  • August 1, 2016

    Bloomberg: Ex-CFTC Regulator Opposes Agency’s Demand for Flash Boys’ Code

    The Commodity Futures Trading Commission shouldn’t force traders to hand over records of their algorithmic trading procedures until after a new administration is chosen, said Bart Chilton, the former commissioner. Instead, regulators should finalize less disputed parts of a sweeping proposal to register and boost oversight of automated traders, according to Chilton. That will prevent […]

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  • July 30, 2016

    Barron’s: How to Fix the ETF Industry

    ETFs aren’t in crisis, but are in transition. Changes are needed so investors can trade safely. Problem: Market orders are the default choice on all brokerage platforms. The fix: Investor education, but brokerages could do more. A group called the Modern Markets Initiative, a trade group for high-speed traders, suggested a mechanism it called the […]

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High Frequency Trading saves
investors money. Here’s how it works.

"(HFT is) working to tighten spreads and enhance liquidity … (investors) benefit by getting lower transaction costs. That results in hundreds of millions of dollars a year in savings to investors in our funds."

Gus Sauter,Former Chief Investment Officer, Vanguard Group