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Can you say how feasible it is to build an HFT startup - the operating costs of execution/connectivity/colocation(!) aside - do you think regulatory authorities
by photon137 15y ago
Can you say how feasible it is to build an HFT startup - the operating costs of execution/connectivity/colocation(!) aside - do you think regulatory authorities make the barrier-to-entry too high?
SEC/FINRA have Series 7/56 requirements for employees, UK has FSA-related principal investment regulations - both require a company to sponsor a person to trade. Also, the MiFiD regulations in EU require an "adequate capital" of 700k euros - is it really possible to get venture/seed capital covering these bare costs so that you just remain "legal", let alone operate?
- veyron 15y agoThanks to sponsored access and the large trader rule, you really just need the blessing of a clearing firm and pay some colocation fees. As a one time cost anyone can get in with 200K deposit (on a 6:1 levered setup) and about 50K in startup expenses, with a 25k/mo recurring charge. P.S.: that is what I am doing now :)
- photon137 15y agoThat's useful to know - thanks!