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July 10, 2017

Pensions & Investments: T. Rowe Price sees benefits of high-frequency trading

Money managers and internally managed pension funds are expected follow T. Rowe Price, which started sending direct equity order flow to high-frequency trading firm Virtu in 2015. “The T. Rowe-Virtu deal is kind of like the canary in a coal mine, and the canary is doing pretty well,” said William R. Harts, CEO of Modern Markets Initiative, a New York electronic and high-frequency trading industry group. T. Rowe Price executives said in the real success of the program has been in finding liquidity — a growing problem for institutions as fewer stocks trade on public markets and more institutional investors move toward passive investing. “The execution quality has been solid,” said Mehmet Kinak, vice president and head of global equity market structure and electronic trading at T. Rowe Price.

READ STORY HERE

“Numerous studies – including the recently released UK Foresight HFT project – have shown that transaction costs for both retail and institutional traders decreased substantially with the growth of high-frequency trading."

Larry Harris, former sec chief economist

Financial Times, December 27, 2012

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