Great feature piece originally printed in the Sunday Business section of the times examining both the drivers and requirements for high speed trading. The article cites TABB Group’s estimate for high frequency trading in the US equity market (56%) and includes a few of my comments.
According to Kevin McPartland of the TABB Group, high-frequency traders now account for 56 percent of total stock market trading. A measure of their importance is that rather than charging them commissions, some exchanges now even pay high-frequency traders to bring orders to their machines.
High-frequency traders are “the reason for the massive infrastructure,” Mr. McPartland says. “Everyone realizes you have to attract the high-speed traders.”