Feb. 28, 2023
February 28, 2023
High frequency trading is an incredibly effective tool in modern capitalism however, greater transparency needs to be lit on the methods that allow such efficient systems. The commission has opened my eyes further on this issue with the data provided regarding execution speeds on different types of orders as well as different sizes of orders. All orders should execute in a timely fashion and the ability of broker dealers to selectively choose which orders get filled to their advantage proves that they are often not working to the benefit of their clients whether it be institutional or household investors. I especially found the statistics on IOC immediate or cancel trades to be detrimental to this point. These seem like efforts to control the flow of trading in capital markets and work against the premises of natural price discovery.