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

  • July 15, 2016

    MMI Guest Editorial: Who you callin’ HFT? Five Misconceptions Surrounding “HFT”

    By Cameron Smith, President, Quantlab Financial True or False: High Frequency Trading (HFT) is a type of firm False. HFT is a general term referring to a form of algorithmic trading that occurs at a rate of action of which only computers are capable. It is a tool not a trader. This point was made […]

    read more →
  • July 14, 2016

    Bloomberg News: Democrats Assail Wall Street with Plan That May Hit Mom and Pop

    Democrats are courting progressive-minded Americans by calling for a tax on Wall Street trades. If the party succeeds, the mom-and-pop investors they’re wooing could bear the brunt. The party supports a financial transaction tax but small investors would probably see an increase in the cost to buy and sell, which has never been lower.  “Politicians […]

    read more →
  • July 7, 2016

    Op-Ed in Pensions & Investments: CFTC reaches too far on sweeping registration requirements and creation of a source code repository

    Attorneys Jason P. Gottlieb and Daniel C. Isaacs write that the proposed source code requirements of Regulation Automated Trading would be a huge cost to government and industry alike, and an intellectual property risk, with little corresponding benefit to the CFTC, which after all can already obtain code by subpoena when necessary. The CFTC should […]

    read more →
  • June 24, 2016

    MMI Second Comment Letter to the CFTC Regarding Regulation Automated Trading

    As previously stated, MMI stands in broad support of the CFTC’s proactive efforts to codify industry best practices and enforce high standards for automated trading. However, the Agency’s Proposal to move source code inspection from a judicial process to books and records provisions (Commission Regulation 1.31) unduly imperils sensitive intellectual property and violates the Fourth […]

    read more →
  • June 21, 2016

    Op-Ed on CNBC.com: New CFTC trading rule is ‘extreme overkill’

    Former CFTC Commissioner Bart Chilton writes that one would not expect Coca-Cola to divulge their secret recipe for the world-renowned soft drink…nor is it required by government. The same is true for other proprietary trade secrets and intellectual property. That, however, could all change by the end of the year if the U.S. Commodity Futures […]

    read more →
img

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