Agree with all these points, esp the one which states HFT can become the market. Our world does not get in the way of market forces, and even over the last 18 months we have seen "successful" trading positions. The issue here is whether the machines can drive a systemmic risk - we we dont want and must avoid. There has to be some regulation and management (ie management is better than control)- and the "tiny tax" for a sink fund might be a viable route.
On the technology front - we at Intel are now being asked frequently for expsoure to the latest CPUs - where these can give a nanosecond advantage in hitting a price. This demand is coming from venues as well as traders - it is a market. Each year we are bringing out perfomance features the percentage improvement depends on how good the code is - but is rarely less than 10%. The point is, HFT is the Formula 1 of trading - and if you are in it it is about focus and technology engineering to ensure that you are at the front of the game in all respects.
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response HFT
Agree with all these points, esp the one which states HFT can become the market. Our world does not get in the way of market forces, and even over the last 18 months we have seen "successful" trading positions. The issue here is whether the machines can drive a systemmic risk - we we dont want and must avoid. There has to be some regulation and management (ie management is better than control)- and the "tiny tax" for a sink fund might be a viable route.
On the technology front - we at Intel are now being asked frequently for expsoure to the latest CPUs - where these can give a nanosecond advantage in hitting a price. This demand is coming from venues as well as traders - it is a market. Each year we are bringing out perfomance features the percentage improvement depends on how good the code is - but is rarely less than 10%. The point is, HFT is the Formula 1 of trading - and if you are in it it is about focus and technology engineering to ensure that you are at the front of the game in all respects.