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I think that this is great! Here's an idea, and one that may already be implemented (please tell me if you know that it is and who is doing it): One could set

by _-__--- 12y ago

I think that this is great! Here's an idea, and one that may already be implemented (please tell me if you know that it is and who is doing it): One could set up a charitable nonprofit that uses HFT systems to maximize the growth of donated assets before sending them off to other charitable organizations. Investors would be able to influence where the money is donated at the end of the day. In a sense, use the "easy money" from wall street to back altruistic endeavors. The problem that I see with this is the easy chance for corruption and graft; however, given a clear altruistic management philosophy, a truly dedicated group of people could run a tight ship and make a difference for people in need. Maybe.

meric 12y ago
Those HFT traders profit from the clumsier pension funds and other similar funds. e.g. algorithm detecting a broker, on behalf of a fund, is buying some stock with one batch per hour, so front run them. They are profiting from teachers and the elderly. I suppose at the end of the day half of the resources lost to those two groups are given to the even more worse off, albeit giving charity administrators a cut.
- jkestner 12y ago
  Not that this is exactly how the middle class has been decimated, but nice illustration.
- cmdkeen 12y ago
  Fund managers also employ dealers who very much do not buy stock one batch an hour so as to allow HFTs to profit from them. They have a fiduciary duty to their clients to aim for best execution, so if they were being disadvantaged they would be crying out to regulators - who like to look after pension funds. The head of Vanguard is on the record saying that his firm benefits from HFTs actions on the market. Narrower margins are a good thing.
maxerickson 12y ago
HFT isn't easy money. Many foundations invest their money, with the idea that they will have a greater overall impact. I guess a prominent example is university endowments.

by _-__--- 12y ago

meric 12y ago

Those HFT traders profit from the clumsier pension funds and other similar funds. e.g. algorithm detecting a broker, on behalf of a fund, is buying some stock with one batch per hour, so front run them. They are profiting from teachers and the elderly. I suppose at the end of the day half of the resources lost to those two groups are given to the even more worse off, albeit giving charity administrators a cut.

jkestner 12y ago
Not that this is exactly how the middle class has been decimated, but nice illustration.
cmdkeen 12y ago
Fund managers also employ dealers who very much do not buy stock one batch an hour so as to allow HFTs to profit from them. They have a fiduciary duty to their clients to aim for best execution, so if they were being disadvantaged they would be crying out to regulators - who like to look after pension funds. The head of Vanguard is on the record saying that his firm benefits from HFTs actions on the market. Narrower margins are a good thing.

maxerickson 12y ago

HFT isn't easy money. Many foundations invest their money, with the idea that they will have a greater overall impact. I guess a prominent example is university endowments.