Last year, our friend RT Leuchtkafer wrote a letter to the Financial Times where he coined the phrase the “high frequency four horsemen”. We would like to update this four horsemen of high frequency trading phrase with some more specific HFT advantages. The four horsemen of high frequency trading that we refer to are: data feeds, colocation, order types and rebates. We have written extensively about how a combination of all four of these horsemen gives the HFT a unique advantage in the equity market. Taken by themselves, each horseman does not give that much of an advantage to the HFT. But combining all
This content is restricted to site members. If you are an existing user, please login. New users may register below.