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 24, 2017

    The Hill: MMI CEO Op-Ed – Night of the living tax: It’s time to bury Ellison’s Inclusive Prosperity Act

    MMI CEO Bill Harts writes that Rep. Keith Ellison reintroduced his plan for a financial transaction tax on every stock, bond and derivatives trade in the country. It was the third introduction / reintroduction of the bill, despite previous stalls.  The not-so-collateral damage of this tax will be a reduction in our ability to keep […]

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  • 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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  • HFT Saves Investors Money

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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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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