Yesterday we wrote about how the HFT community has begun to lobby to eliminate the Order Protection Rule.   It’s no surprise to us that they are trying to change the rules now since their cash machine, which unofficially began in 2007 (with the implementation of Reg NMS), seems to be grinding to a halt. After squeezing every last arbitrage (latency, regulatory, rebate) penny out of Reg NMS for the past 10 years, the HFT community now wants new rules so they can create new arbitrage opportunities. So why now?  Why do they all of the sudden care about the ten year (more…)

  Surely, you all remember the organized and orchestrated opposition to IEX’s Exchange Application. HFT proponents joined the existing status quo stock exchanges in voicing opposition to the IEX’s slow calamitous speedbump. They all feared the innovations put in place into the free market by IEX. These innovations include: Providing a 350-microsecond speedbump (slowing everybody down equally) Providing free market data. NOT selling colocation. Providing Free Lit trading and no maker taker rebates. NOT providing individual order data, which would “leak”. The above innovations have had the effect of not only lowering trading costs for all of us through increased (more…)