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

  • 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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  • December 28, 2016

    ValueWalk: Why Did Regulator Have Computer Trading Code On Personal PC?

    Mark Melin writes that a 2016 SEC Office of Inspector General (OIG) report contains a little-noticed reprimand of an SEC quantitative analyst charged with improperly requesting and downloading confidential computer code to his personal computer.  This as measures in the CFTC’s pending Reg AT call for regulators to have subpoena-less access to source code used by […]

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  • December 23, 2016

    WSJ: Multiple Buyers, Not One, Influenced Most Active E-Mini Move of 2016

    Alexander Osipovich reports that a sharp move in stock-market futures that fueled the Dec. 7 buying in U.S. equities likely reflected trading by multiple buyers.  MayStreet LLC, said its initial analysis was that the move was a single trade.  The firm changed its view after being contacted by the Modern Markets Initiative, which carried out its own […]

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  • December 9, 2016

    MMI Comment Letter to the SEC Regarding Regulation National Market System

    We propose a review of the Reg NMS in light of technology and efficiencies that have made some measures unnecessary or contributed to market inefficiency.  In our letter, we propose a review of the effectiveness of The Order Protection Rule, the prohibition on locking or crossing quotations and consideration of a competing consolidators model for […]

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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