Comments on: Why there’s less high-frequency trading http://blogs.reuters.com/felix-salmon/2012/10/15/why-theres-less-high-frequency-trading/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: traduceri daneza romana http://blogs.reuters.com/felix-salmon/2012/10/15/why-theres-less-high-frequency-trading/comment-page-1/#comment-53606 Mon, 29 Sep 2014 14:00:30 +0000 https://blogs.reuters.com/felix-salmon/?p=18927#comment-53606 stylish, easy and restrained

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By: EllieKim http://blogs.reuters.com/felix-salmon/2012/10/15/why-theres-less-high-frequency-trading/comment-page-1/#comment-46196 Tue, 12 Mar 2013 15:13:15 +0000 https://blogs.reuters.com/felix-salmon/?p=18927#comment-46196 This and other topics that are relevant for speed traders and institutional investors will be discussed at High-Frequency Trading Leaders Forum 2013 London, next Thursday March 21.

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By: wilbur2012 http://blogs.reuters.com/felix-salmon/2012/10/15/why-theres-less-high-frequency-trading/comment-page-1/#comment-43964 Wed, 17 Oct 2012 11:20:06 +0000 https://blogs.reuters.com/felix-salmon/?p=18927#comment-43964 there is a very simple reason for less HFT activity and profits that seem to be lost on the author; the fact that the last 6 months have been the least volatile in 6 years. In times of high volatility, there is more demand for liquidity and as suppliers of liquidity there will be less demand for their services.
I find it quite unbelievable that the author still maintains that HFT is a bad thing when he actually shows a graph depicting a fall in institutional trading costs by almost 50% in the last decade! So where exactly are these negative effects?

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By: qusma http://blogs.reuters.com/felix-salmon/2012/10/15/why-theres-less-high-frequency-trading/comment-page-1/#comment-43949 Tue, 16 Oct 2012 18:24:39 +0000 https://blogs.reuters.com/felix-salmon/?p=18927#comment-43949 This just shows that we have reached the limits of arbitrage on the time scale. I like Cowen’s idea of decreasing the size of the minimum spread from the (absurdly large) 1 cent, to something like .01 cents. Force the bots to compete on price instead of just time, and everybody wins.

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By: jmh530 http://blogs.reuters.com/felix-salmon/2012/10/15/why-theres-less-high-frequency-trading/comment-page-1/#comment-43934 Mon, 15 Oct 2012 22:32:40 +0000 https://blogs.reuters.com/felix-salmon/?p=18927#comment-43934 @Auros After thinking on it more, I would instead prefer something similar to a taker fee or something like that. So a quote that is out 1s or more (or something like that) has no extra fee, but the less time the quote is available before being canceled the greater the fee.

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By: Auros http://blogs.reuters.com/felix-salmon/2012/10/15/why-theres-less-high-frequency-trading/comment-page-1/#comment-43933 Mon, 15 Oct 2012 22:26:05 +0000 https://blogs.reuters.com/felix-salmon/?p=18927#comment-43933 I love jmh530’s idea of forcing bids to stay good for some minimum period of time. Even if you made it something like five seconds, that would nuke much of the HFT nonsense, while remaining invisible to normal human beings.

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By: TFF http://blogs.reuters.com/felix-salmon/2012/10/15/why-theres-less-high-frequency-trading/comment-page-1/#comment-43932 Mon, 15 Oct 2012 22:21:44 +0000 https://blogs.reuters.com/felix-salmon/?p=18927#comment-43932 All good ideas. If you can’t run your operation without spamming the book, it isn’t worth running. And a small fee won’t get in the way of legitimate trades — while providing clarity to the market activity.

Efficient markets require freedom of information. The present system is intentionally opaque.

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By: Eericsonjr http://blogs.reuters.com/felix-salmon/2012/10/15/why-theres-less-high-frequency-trading/comment-page-1/#comment-43924 Mon, 15 Oct 2012 20:12:11 +0000 https://blogs.reuters.com/felix-salmon/?p=18927#comment-43924 +1 on financial transactions tax. Small, uniform, and universal. Slow ’em down.

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By: jmh530 http://blogs.reuters.com/felix-salmon/2012/10/15/why-theres-less-high-frequency-trading/comment-page-1/#comment-43922 Mon, 15 Oct 2012 18:52:44 +0000 https://blogs.reuters.com/felix-salmon/?p=18927#comment-43922 Not sure I agree on the financial transactions tax. Some useful things they could do though is 1) put a requirement that orders can’t be canceled until a certain period of time has passed, 2) sub-decimal pricing, 3) make the maker-taker fee a function of the bid/ask spread (when the bid/ask spread widens either absolutely or relative to recent history, those who make liquidity should be paid more).

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By: TalF http://blogs.reuters.com/felix-salmon/2012/10/15/why-theres-less-high-frequency-trading/comment-page-1/#comment-43919 Mon, 15 Oct 2012 17:57:29 +0000 https://blogs.reuters.com/felix-salmon/?p=18927#comment-43919 If orders are the problem, why not a financial orders tax? If the goal is to discourage HFT, seems like that would disproportionately affect the HFT guys without getting much in the way of real money traders.

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