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Exactly. HFT disempowers market makers b/c all those orders create extra liquidity with worse spread for market makers. The anti-HFT sentiment is similar to t
by grandalf 16y ago
Exactly. HFT disempowers market makers b/c all those orders create extra liquidity with worse spread for market makers.
The anti-HFT sentiment is similar to the opposition to electronic exchanges and demands that all pricing be centrally routed -- the old school exchanges realize they have a sweet deal and so they try to fight off other sources of trades/liquidity/pricing.
- HockeyPlayer 16y agoYou are confused. Most HFT shops are market makers.
- grandalf 16y agoTechnically you're correct, but I was referring to the traditional market making firms who buy seats on exchanges to do business in a handful of stocks.
- HockeyPlayer 16y agook, I understand your point. I think we agree that the HFT firms tightening spreads is good for consumers.