Our long-time friend and collaborator, R.T. Leuchtkafer, has put together a single document that organizes and presents years of data-driven research (academic, government, and industry) of the adverse effects of high frequency trading on markets. This undertaking is mammoth, and it includes press, op-eds, key commentary, books, and documentaries. It is organized. It has sections that you will be immediately drawn to, such as effects of HFT on market quality and investor costs. This is such a key and handy reference for all of you, especially in an age in which HFT firms have grown in mammoth ways, and have (more…)

  The SEC unanimously approved a pilot program in December called the Transaction Fee Pilot [sec.gov]. The purpose of this pilot is to test the effect on some of the distorted incentives in our markets on market quality, and includes a bucket of securities where rebates are banned. It’s a one year pilot with the option for the SEC to extend it to a second year. It includes three buckets or Test Groups, including a no-rebate bucket:   The three major stock exchange families that engage in paying rebates had hinted from the outset that they might sue to block (more…)


Nov, 2018