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

  • 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 […]

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  • 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 […]

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  • June 21, 2016

    MMI CEO in Morning Consult: IEX application approval creates best execution wait-and-see

    One critic of IEX’s application has been the New York-based Modern Markets Initiative. MMI represents high-frequency traders.  With the SEC approval of IEX, “the debate will now move to best execution, and whether IEX can improve its quality to be on par with other exchanges,” MMI chief executive Bill Harts said. “Brokers must be diligent […]

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  • June 16, 2016

    MMI CEO Op-Ed in USA Today: The best markets ever for investors despite IEX claims

    Fair and fierce competition in the U.S. stock market has greatly benefited our country. It has attracted some of the world’s brightest analytical minds and resulted in a dramatic reduction in trading costs for mom-and-pop investors. In fact, Vanguard estimates long-term savers now realize 32% more money in their portfolios because of today’s modern markets. […]

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  • June 16, 2016

    Op-Ed on FoxBusiness.com: Financial Transaction Tax – A Failure In The Making

    Former CFTC Commissioner Bart Chilton writes that politicians are throwing responsive darts at the public’s generalized irk and ire at the financial sector. Elect an “outsider”. Put more people in the slammer. Break up the big banks. Slow down technology. And, the biggest tomato pie being hurled from the policymaking crowd: impose a financial transaction […]

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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