According to IIROC (Canada's SEC), HFTs are active on TSX-V, but not in all stocks or to the same extent that they trade the TSX blue chips. I would imagine the

According to IIROC (Canada's SEC), HFTs are active on TSX-V, but not in all stocks or to the same extent that they trade the TSX blue chips. I would imagine they'd stick with the highest volume TSX-V stocks. The ones that aren't liquid have low opportunity and risks that are impossible to model/hedge (penny stocks can easily go to 0 from an accounting scandal or jump 1000% if a wildcat strikes gold or oil). "Figure 9 shows the HFT participation as a fraction of all transactions and value. Compared to the main market, HFT activity in TSXV stocks is lower, with only 20% of transactions and less than 10% of value involving an HFT on the passive side (aggressive volume is negligible). As Panel C indicates, however, they submit about 55% of all orders, and they are thus noticeable in these securities. Panel D highlights the share of HFT and other traders’ orders relative to best prices. HFTs generally submit more than half of the orders that are submitted at the best price or that are improving the best price." [1] 1: http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=048AE4017CF34FCE8243ECD7A3C2913A&Language=en http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=048AE40...