Thu, 06 Oct 2011 00:14:47 GMT - High Frequency Trading Review
If you need to establish a one-size-fits-all stance on whether high frequency trading (HFT) is good or bad, don’t bother. The recent Bank for International Settlements (BIS) Markets Committee paper ‘High frequency trading in the foreign exchange market’ does a great job of helping to explain why market making and algorithmic flow may have similarities, yet is different, to HFT flow. It also clarifies why HFT differs between FX, equity and other markets, and thus why a single politically-acceptable sound bite either praising or demonising HFT just won’t do.
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