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Article: High Noon For High Frequency; Profits are now measured in microseconds. Will regulators tell traders: Not so fast?(Trading)
- Article from:
- Securities Industry News
- Article date:
- August 3, 2009
CopyrightCOPYRIGHT 2009 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Katherine Heires
They are known by different names. Most commonly, high-frequency trading firms, hi-fi traders or simply HFT's. Less often, virtual market makers, liquidity rebate traders or predatory algorithmic traders. But whatever the name, the ability of individual firms to make thousands of trades a second, before slower participants get going, raises a different question of speed: Is regulation needed? And, if so, in what format?
Often using their own funds, many are independent trading firms. Others are divisions of large hedge funds such as Citadel or DE Shaw or represent the proprietary trading desks of large banks or bulge bracket ...