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

  • October 26, 2016

    Bloomberg: Wall Street’s Speed Demons Are Heroes

    Across the wider world, Wall Street’s speed demons are all too often cast as the villains of the stock market. But in academic circles at least, high-frequency traders are more often treated like heroes. Since 2013, positive research has outnumbered negative by a 2-1 margin, a database search of the 30 most-cited papers on HFTs […]

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  • October 24, 2016

    Raining on their Parade

    This month, a study was presented by two professors at Wilfrid Laurier University that looked at the effect of rain, sleet and snow on U.S. trading quality. A simple interpretation of its findings by modern market critics led to a string of jubilant comments touting that when bad weather slows fast trading, market prices improve, […]

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  • October 19, 2016

    Waters Technology: Reg AT’s Source Code Proposal Remains Lighting Rod

    Dan DeFrancesco reports panelists at the North American Buy-Side Technology Summit 2016 discussed the merits of a portion of Reg AT calling for subpoena-less access to source code. Bill Harts, CEO of Modern Markets Initiative said the CFTC can already access a firm’s source code through a subpoena, which, because it’s a legal procedure, implies […]

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  • October 17, 2016

    (Video) Anatomy of an IPO: MMI Member GTS

    NYSE designated market maker and high-frequency trading firm GTS recently managed the largest IPO of 2016. In an exclusive video and accompanying Q&A with GTS CEO Ari Rubenstein, we present a behind-the-scenes look at the preparation and execution by GTS as it helped take Line Corp. public with a market capitalization of approximately $10 billion. […]

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  • October 17, 2016

    Bloomberg: Two Year Anniversary of Volatility in the Treasuries Market

    On Oct. 15, 2014, benchmark Treasury 10-year yields plunged as much as 34 basis points before reversing direction to finish the day six basis points lower at 2.14 percent. The 2015 investigative report found that so-called principal trading firms that employ high-frequency trade strategies were the primary contributors of liquidity throughout the episode, even though […]

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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