How HFT Improves Markets
The introduction of automated trading platforms, such as HFT, has created savings for investors through reduced trading transaction cost and more efficient pricing. HFT saves investors money by driving down trading intermediary costs, quickly facilitating markets and providing continuous quotes at a fraction of the cost of traditional brick and mortar stock trade commission rates.
Reliable intermediaries, such as HFT and automated trading, are essential to instilling investor confidence and making our markets an effective engine for economic growth and prosperity. Pension funds, university endowments, 401k and 529 plan holders, all benefit from the orderly functioning of the market and efficient pricing of automated traders as market intermediaries.
HFT plays a vital role in providing liquidity and stock quotes the markets, whether in period of calm or market volatility, offering a counterparty for buyers and sellers in the markets. HFT firms have developed protocols to provide liquidity to be nimble and adaptable in different market conditions.