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

  • May 25, 2016

    Futures and Options World: High-speed traders – Don’t take our code

    “For the most part what they put out in Reg AT are best practice rules that most high-frequency trading (HFT) firms already follow,” said Bill Harts, CEO for the Modern Markets Initiative, a group that supports HFT and proprietary trading firms. “The one exception that we really take issue with is the idea that the […]

    read more →
  • May 24, 2016

    MMI CEO in The Washington Post: Take On Wall Street group calls for an ill-conceived financial transaction tax

    The proposed so-called transaction tax has already raised concerns among some on Wall Street.  Such a tax would also effect pension funds or other large investors who sometimes trade thousands of stocks a day, they say.  “While some politicians claim this tax is directed at high frequency trading, the truth is that it would directly […]

    read more →
  • May 19, 2016

    Business Insider: MMI Releases New Video

    Modern Markets Initiative is making a new effort to demystify the firms. In a new video, senior executives at four HFTs — Global Trading Systems (GTS), Hudson River Trading, Quantlab Financial and Tower Research Capital — make a case for their style of trading to the average investor.  In the video, the HFT execs make […]

    read more →
  • May 12, 2016

    MMI CEO Op-Ed in MarketWatch: Investors have the best stock market ever — thanks to high-frequency trading

    Would you like to retire with 32% more money in your 401(k) account? Do you want to be sure your online brokerage is providing you with the best prices on your stock trades? Do you want to ensure your mutual funds have the potential to generate a higher return for you than even a decade […]

    read more →
  • April 29, 2016

    The Path Forward

    I’ve been watching the latest SEC debate kicked off by IEX’s exchange application with some wonderment. After all, the law is pretty clear: exchanges aren’t allowed to employ intentional delays, let alone selectively-applied intentional delays. At the same time, the SEC was clear about the fact that they were searching for a fair way to […]

    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