If high-frequency trading is not one of the top issues of discussion at this year’s Global Financial Leadership Conference, then properly addressing it in the future most likely is. The lead-off panel at the conference in Naples, Florida discussed the perceptions, realities and possible regulatory outcomes for high-speed electronic trading, often referred to as “algorithmic” or “high-frequency” trading.
1. Talking about it in microseconds
2. Co-location, or the close proximity of matching engines between a trading firm and an exchange.
3. The use of highly liquid instruments
4. The lack of a need to hold investments, or an environment that allows rapid buying and selling.