3 ms·
All of these details sound plausible, but as whole this (the assertion that the profit made by HFT comes primarily at the expense of other market makers) smells
by mundo 10y ago
All of these details sound plausible, but as whole this (the assertion that the profit made by HFT comes primarily at the expense of other market makers) smells wrong. If that assertion were true, it would seem to imply that market-making is less profitable today than in the past. Is that the case? I was under the impression that it was more profitable.
- ikeboy 10y agoVirtu is a huge market maker. They are/were 3-5% of all equity trades in the US [0]. They make $200 million a year in profit [1]. [0] https://online.wsj.com/public/resources/documents/VirtuOverview.pdf https://online.wsj.com/public/resources/documents/VirtuOverv... [1] https://en.wikipedia.org/wiki/Virtu_Financial https://en.wikipedia.org/wiki/Virtu_Financial