6 Practical Tips for Fund Managers Dealing with HFT in Australia

BestEx Asia Ltd

BestEx Asia Ltd

6 Practical Tips for Fund Managers Dealing with HFT in Australia. (1) Gain a BASIC UNDERSTANDING of the types and strategies of HFT, the way different brokers rout orders, the brokers that facilitate HFT in their dark pools and the impact of trading with HFT on your performance. (2) Execute exclusively through 'SMART' BROKERS and use tools that specialise in searching for liquidity without signalling your intentions to the market. (3) AVOID SUBMITTING ROUND LOT ORDERS that signal to HFT the presence of a human operator. (4) AVOID GIVING VWAP OR PARTICIPATION RATE INSTRUCTIONS that follow a predictable trading schedule and are easily picked off by HFT. (5) Consider OTHER WAYS TO PAY BROKERS FOR RESEARCH if their execution methods are harming your performance. (6) CHOOSE TRADING VENUES that incorporate smart matching engines that benefit you more than the venue operator or other participants.


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BestEx Asia Ltd
BestEx Asia Ltd
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BestEx Asia Ltd

BestEx is an innovative, broker neutral, buy-side dealing desk that enables investment managers to achieve best execution in multi-market environments.\r\n\r\nWe use technology to source liquidity and execute orders with the best possible outcomes...

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