The impacts of high-frequency trading (HFT) on the equities market is a concern for more than half of traders at asset management firms in Australia and across Asia, according to a survey released by Liquidnet, the global institutional marketplace.
Globally, HFT was a concern for more than two-thirds of the more than 300 survey respondents. Respondents were solicited from the 630 institutional asset management firms that trade with Liquidnet. Participants from the US, Europe and Asia-Pacific were polled during a three-week period ending July 7.
Liquidnet cited studies by industry research analysts Aite Group and Tabb Group concluding that almost 75% of overall daily equities trading can be attributed to high-frequency trading. Liquidnet does not allow high-frequency trading in its marketplace.
Traders who ascribe negative impacts from HFT have driven a “flight to safe trading venues” such as Liquidnet, Macqueen says. “Some of the signals or imbalances that people are leaving on the market are forcing people to adjust to how they execute their trades.”