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The only kind of HFT I’m directly familiar with is for automated market making, so I’ll speak to that. Market making in itself provides a valuable service by k
by BonesJustice 8y ago
The only kind of HFT I’m directly familiar with is for automated market making, so I’ll speak to that.
Market making in itself provides a valuable service by keeping spreads razor thin and ensuring there’s enough liquidity to satisfy almost any trade at close to the current spot price. HFT is mostly just a way for market makers to gain an edge over each other. In general, it neither helps nor harms ‘regular’ customers. It would hardly be noteworthy if not for the insane lengths that HFT groups go to in order to gain an edge. And, of course, the possibility that a HF system with inadequate controls goes on a trading rampage that significantly moves the markets (see Knight Capital).
- MuffinFlavored 8y ago> market makers How many market makers are there?
- growse 8y ago> > market makers > How many market makers are there? However many the market will support. How many shoe shops are there?
- kasey_junk 8y agoA lot less than their used to be. The margins have been driven out of that business. Like most industries that’s led to consolidation. I’d guess Citadel/Virtuu/Jump capture the vast majority of that business.
- mruts 8y agoAlso Jane Street and Sasquehanna in the EFT space. Both of those firms are making great money nowadays.
- calabin 8y agoWolverine is in there somewhere as well
- kasey_junk 8y agoYeah the more I think about it there probably are lots of market makers still because of market specialization. But it’s not like before when a single person could be a market maker or even later when small prop shops could do it.
- danaur 8y agoAnywhere I could read about the historical context/progression you reference?
- aldanor 8y agoTypo corrections: ETF and Susquehanna.
- pmart123 8y agoYou can get a rough idea by looking at the number of firms in these links. Overtime, it has consolidated. https://www.canarywharfian.co.uk/threads/list-of-proprietary-trading-firms.688/ https://www.canarywharfian.co.uk/threads/list-of-proprietary... Then also the associate firms on this list: http://fia.org/members http://fia.org/members