Let's stick to evidence based debate around HFT. Last year an ASIC taskforce conducted thorough analysis on HFT in Australia. It concluded HFT supplied liquidity more than it demanded it and found no evidence of systematic misconduct. It also found market participants confused HFT activity with algorithms used by more sophisticated buy-sides and brokers. As previously stated, the extent to which institutional investors have an HFT 'problem' is a function of the brokers they use, the venues they trade on and the way they execute. While some brokers have invested in co-location and algorithms to protect their clients from HFT, others blame the market structure for their failure to keep pace with execution technology. We believe that misinformation poses a greater threat to investor confidence than HFT. Investors should reward brokers that offer superior execution capabilities, rather than those who have failed to adapt to today's market. (VIEW LINK) (VIEW LINK)
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