Article Is High-Frequency Trading (HFT) A Fancy Term For Cheating?

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T2W Bot

Staff member
Dec 19, 2004
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#1
The furore over high-frequency trading (HFT) was once just a preoccupation of those directly connected with Wall Street. Now the topic has gone mainstream and may soon go all the way up to the White House.
In October 2015, US Presidential hopeful Hilary Clinton’s campaign proposed a tax on HFTs, a move that surprised many, since previously this was considered some quixotic notion of her rival Bernie Sanders. At a press conference in May 2015, Sanders’ “Robin Hood Tax” campaign detailed the Vermont senator’s proposal for a tax on trades at $0.50 per $100 for stocks and a smaller amount for certain other financial instruments. The quixotic purpose: to use the tax revenue to make US public universities free, and eradicate student debt. The real target, some say, was cracking down on HFTs. As a Robin Hood Tax press release stated, “The Robin Hood tax would also slow the growth of automated high frequency trading, which makes the stock market more dangerous. A small tax would make risky...
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piphoe

Well-known member
Oct 31, 2015
9,957
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#2
I enjoyed the article, thank you. My question to the author is WHEN did HFT really begin to become a significant volume of the US FUTURES markets? I've heard somewhere around 2007 or so? Before that, I read human traders were the greater VOL. Anyone with knowledge may answer pls. Thank you.
 
Nov 8, 2005
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#3
ENjoyed but......

Thanks for the article but interested to know what 'games' you think the HFTer's can get away with on the futures Xchanges? OK so they will do co-location, but unless they can find futures products traded on multible other Xchanges then no arbitraging for them. Interested in your thoughts.
thanks