HFT Strategies the Same Regardless of Data Feed Variety or Speeds

The Issue:

Former SEC Chairman Mary Jo White has said that a “fairness concern” is the latency difference between the direct data feeds and the consolidated feeds. Some have argued that the lag between the speed in which direct feeds and slower consolidated feeds deliver refreshed stock prices could lead to an unfair advantage for those with the faster feeds. Chairman White suggests exchanges could “include affirmative or negative trading obligations for high-frequency trading firms that employ the fastest, most sophisticated trading tools. Such obligations would be analogous to the ones that historically applied to the proprietary traders with time and place advantages on manual trading floors.”

MMI’s Stance:

If the consolidated feed were replaced with direct feeds for all, it would not affect the strategies of our Member firms. In fact, our Members trade successfully in asset classes with only a single data feed, such as the U.S. Treasury market and the Chicago Mercantile Exchange here in the U.S., and in multiple geographies where there is also only a single data feed.