Timmy elsewhereJune 16, 2013 Tim WorstallTimmy Elsewhere1 CommentAt the ASI. HFT is shrinking even without an FTT. So why bother with an FTT? previousNorway introduces slavery for womennextHorrors! Dividends paid out of post tax profits! 1 thought on “Timmy elsewhere” ken June 16, 2013 at 5:04 pm HFT has two potential problems: 1) It appears that it may be reducing market makers profits and thus removing liquidity – I am not a big believer in the HFT adds liquidity argument since they retreat whenever volatility spikes and a lot of what they do is jumping in front of a big order. 2) It is possible that their activity especially the way in which their algos work increases volatility and increases trading costs at certain times. On the other side, while I’m not a big believer in HFT increases liquidity, I am willing to go with HFT increases market efficiency by increasing the speed of information transmission as their algos make connections faster and more efficiently when new news hits the market. Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment Name * Email * Website Save my name, email, and website in this browser for the next time I comment.