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Can you please get into the nitty gritty? Why is anyone using IEX if there is so much HFT on it? Edit: http://blogs.wsj.com/moneybeat/2014/08/11/debate-over-h
by wdewind 11y ago
Can you please get into the nitty gritty? Why is anyone using IEX if there is so much HFT on it?
Edit: http://blogs.wsj.com/moneybeat/2014/08/11/debate-over-high-frequency-trading-on-iex-muddied-by-trade-counting/ http://blogs.wsj.com/moneybeat/2014/08/11/debate-over-high-f... Seems like there is some debate. IEX claims 17.7% which is still higher than I expected.
- vasilipupkin 11y agowhy not use it? if it has liquidity and an attractive fee structure, why wouldn't any trader trade on it, HFT or not ?
- deleted 11y ago[deleted]
- gd1 11y agoI believe the discrepancy comes down to whether you count opposing counterparties indivdually or not. i.e. If 6 trades involve 6 non-HFT/non electronic market-maker (referred to as 'naturals') trading against 6 other naturals, and the other 4 involve naturals trading against resting HFT liquidity, you could either count that by counterparty that is HFT - (4 out of 20 counterparties) = 20%, or the number of trades that involve someone taking HFT liquidty - (4 out of 10 trades) = 40%. So the 17.7% of HFT counterparties squares roughly with 30%+ HFT trades.