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

  • 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 […]

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  • April 25, 2016

    MMI Comment Letter to The U.S. Treasury’s Request for Information on the Evolution of Treasury Market Structure

    A well-functioning and efficient market built for the future is in everyone’s interest. For cash U.S. Treasuries, eSpeed and BrokerTec are registered ATSs that are subject to SEC Rule 15c3-5 requiring risk management controls. We believe these are transparent, open trading platforms subject to the kind of competition and oversight that has helped reduce investor […]

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  • April 20, 2016

    MMI CEO on Fox 5 News: Senator Sanders Financial Transaction Tax Would Hurt Pensions

    MMI CEO Bill Harts says he doesn’t think there’s a single Wall Street candidate for president, and believes if you took 10 traders and put them in a room, you’d get 15 different opinions. But a financial transaction tax, specifically the one being proposed by Sanders, would be implemented in such a way that it […]

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  • April 15, 2016

    MMI CEO Op-Ed in CNBC.com: Bernie Sanders’ Financial Transaction Tax a Bad Idea Built on Bad Research

    MMI CEO Bill Harts writes that Democratic presidential candidate Bernie Sanders is running an aspirational campaign long on provocative ideas, but short on critical details.  His rhetoric over reality is alarming in light of his signature pledge to fund free college with a financial transaction tax on arguably the world’s best markets for economic growth and […]

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  • March 23, 2016

    MMI CEO in The Hill: Wall Street pushes back on trading tax

    The Modern Markets Initiative, an advocacy group for high-frequency trading firms, has been writing op-eds to speak out against the (financial transaction tax) proposals and is talking to other financial groups and policymakers about the issue, the group’s chief executive officer, Bill Harts, said. “It’s important enough, and enough people are talking about it, that […]

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  • 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 …

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  • 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 …

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  • 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 …

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  • 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 …

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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