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

  • November 16, 2016

    The Buy Side Isn’t Buying It

    If you’ve listened to the market structure debate over the past few years, you’d think large, institutional investors — the “buy side” — desperately need ‘speed bumps’ and other barriers to protect them from high frequency trading (HFT). The discussion has been more about demonizing than data, except that it ultimately led to a well-publicized […]

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  • November 10, 2016

    Financial News: Possible Consequences of the Pending Trump Presidency on Reg AT

    Tim Cave reports Bill Harts, chief executive of New York-based HFT advocacy group Modern Markets Initiative, said that as a result of the election of Trump, the 2005 equity trading regulation Regulation NMS may be reviewed.  He also pointed out that Regulation AT – the CFTC’s new rules overseeing algorithmic trading which include a controversial provision […]

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  • November 9, 2016

    Washington Post: Possible Consequences of the Pending Trump Presidency on a FTT

    Renae Merle reports Wall Street insiders had been preparing for a Clinton administration that would institute a financial transaction tax on trading. That now appears to be off the table.  “We have no reason to believe President-elect Trump is in favor of anything but the cost-effective, efficient markets we have in America today. We don’t need […]

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  • November 4, 2016

    Dissent by Commissioner J. Christopher Giancarlo Regarding Reg AT Source Code Provision

    The subpoena process provides property owners with due process of law before the government can seize their property. It protects owners of property – not the government that already has abundant power. It allows property owners an opportunity to challenge the scope, timing and manner of discovery and whether any legal privileges apply to the […]

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  • November 4, 2016

    ValueWalk: CFTC One Step Closer To Reg AT, Requiring Access to Algos

    Mark Melin reports the CFTC proposed rulemaking changes to issue a “special call” notice to registered participant as opposed to a legal subpoena, when seeking access to the source code of automated traders. CFTC Chairman Tim Massad said engaging in market manipulation “should not be able to hide behind machines.” Modern Markets Initiative CEO Bill […]

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

"High-frequency trading in general has been good for the retail investor."

Fred Tomczyk,CEO, TD Ameritrade