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.

  • HFT Saves Investors’ Money

    A key metric to determine if the cost to trade is getting lower, is to see how tight “spreads” are. This is the price difference between …

    read more →
  • HFT as Intermediary

    All financial markets have needed professional intermediates to offset short term supply demand imbalances, find the fair price which reflects current buying …

    read more →
  • Financial Transaction Tax

    A Financial Transaction Tax (FTT) will hurt all investors because it will directly affect everyone who has a portion of their retirement savings or other assets …

    read more →
  • Our ETF Proposals to the SEC

    For about an hour on August 24th, 2015, circuit breakers interfered with regular ETF trading, and during that time …

    read more →

Latest News

  • February 5, 2016

    Blame Game

    In the 1946 film Gilda, Rita Hayworth sings the satirical song Put the Blame on Mame. The song describes a seductress so disruptive, her wiles caused the Great Chicago Fire, New York City’s Great Blizzard of 1888 and the 1906 San Francisco earthquake. It’s been playing over and over in my head lately, albeit with […]

    read more →
  • February 4, 2016

    Financial Times: MMI Member Mark Gorton Calls for Better Exchange-Level Risk Controls

    Financial Times’ Robin Wigglesworth features MMI Member Mark Gorton, the founder and head of Tower Research Capital.  “The recent evolution of markets from manual to electronic trading has had huge benefits and investors save money every day due to the lower cost of trading. But electronic trading brings with it a number of new risks, […]

    read more →
  • February 4, 2016

    Ahead of the Herd

    High frequency trading (HFT) has helped to improve every market it enters. In equities, the implicit cost to trade, known as the spread, has plummeted with the increase in HFT participation. In treasuries, where the interdealer market participants are mostly HFT, a multi-agency government report showed proprietary trading firms provide liquidity even during extreme volatility […]

    read more →
  • January 27, 2016

    Modern Trader Op-Ed: MMI CEO – Source code, it’s the real thing

    In Modern Trader magazine, MMI CEO Bill Harts writes that when Coca-Cola abruptly withdrew from India in 1977, where it had been operating profitably for more than 20 years, it did so because it did not want to comply with a new government order to reveal its “secret formula.” Today, a proposal by the U.S. […]

    read more →
  • January 26, 2016

    Bloomberg TV: High-Speed Firms Now Oversee Almost All Stocks at NYSE Floor

    Modern Markets Initiative Founding Member Global Trading Systems agreed to purchase Barclays Plc’s business at the New York Stock Exchange floor, meaning high-speed trading firms now manage buying and selling of nearly all securities there. Betty Liu interviews GTS CEO Ari Rubenstein at the New York Stock Exchange to discuss the purchase. Ari says that […]

    read more →

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

"…the positive overall effects of HFT on market quality are well-documented and appear by now pretty robust."

Evangelos Benos,The Bank of England