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

  • February 13, 2017

    The Street: In the Long Run, Trump’s Tweets Don’t Matter

    Emily Stewart reports that no clear pattern can be derived from the performance of the public companies President Trump has attacked or complimented on Twitter.  MMI CEO Bill Harts said “At this point, we’re sort of waiting for someone to show some kind of proof or data that actually shows that this is happening and […]

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  • January 30, 2017

    The MoneyLife Radio Program: MMI CEO Bill Harts Interview

    Program Host Chuck Jaffe, winner of numerous awards for business and personal finance journalism, speaks to Bill Harts about the benefits of high frequency trading (HFT) for investors.  The interview focused on the role of efficient intermediaries that use HFT and work on razor thin margins.  The resulting automation has produced tremendous savings for investors […]

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  • January 26, 2017

    Is NYSE Bumping up its Listings?

    Recently, NYSE announced it was going to introduce a “speed bump” exchange called NYSE American. Critics jeered that NYSE just blatantly copied IEX’s market structure. And it is true that the bump is going to be 350 microseconds, just like IEX. It will have a complex discretionary pegged order type, just like IEX. And it […]

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  • January 23, 2017

    Getting Up to Speed on the NYSE Announcement

    In some recent news, the New York Stock Exchange announced they were allowing stocks from other exchanges to trade on their main floor. That reversed a centuries old policy and left some wondering why NYSE was breaking with tradition. Further, the press release explaining the new access touted the benefits of the NYSE allocation model […]

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  • January 20, 2017

    MMI Comment Letter to the CFTC Regarding Supplemental Notice of Proposed Rulemaking for Regulation AT

    This Proposed Rule threatens to erode confidence in our country’s resolve to uphold the regulatory standards that protect the innovation that drives much of our economy. Despite the changes in the proposed rule as listed in the Supplemental, it still grants a government agency the ability to bypass due process to access confidential and highly […]

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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