Katsuyama On Difference Between “Predatory HFT” vs. “Market Makers”

Mark Melin

Published onMay 29, 2014

Updated on May 13, 2021

Faster trading does not lead to investors obtaining the best price for stocks, according to a study by European academics who considered the NASDAQ OMX Group, Inc. (NASDAQ:NDAQ) trading venue.

Table of Contents

Study notes increase in cost with faster trading

The study, led by University of Amsterdam’s Albert Menkveld and reported in Bloomberg, noted that when NASDAQ OMX Group, Inc. (NASDAQ:NDAQ) upped the speed in markets in Copenhagen, Helsinki and Stockholm in 2010, it ignited a heightened pressure on market maker profits, which actually widened the cost to investors.

Katsuyama differentiating between market makers...

Login required to continue reading.

Setup a free account to get access to this article (no credit card required).

View Full Article

Already a member? Log in here

Mark Melin

Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.

Katsuyama On Difference Between “Predatory HFT” vs. “Market Makers”

Study notes increase in cost with faster trading

Katsuyama differentiating between market makers...

Login required to continue reading.

Get Your Business News