What Comes Next for High Frequency Trading?

The video discusses high frequency trading (HFT) and dark pools, highlighting their significant role in global equity markets. It explores the impact of Michael Lewis's book on industry transparency and client behavior, emphasizing the need for transparency in order routing and potential conflicts of interest. The video also covers regulatory efforts to improve market transparency and the challenges faced by the sell side due to increasing costs and market dynamics.

What percentage of U.S. equity volumes is attributed to high frequency trading?

• 10%

• 75%

• 25%

• 50%

What is the primary purpose of alternative trading systems (ATS)?

• To eliminate manual trading

• To increase trading costs

• To increase market volatility

• To reduce market impacts

How did Michael Lewis's book affect the industry?

• It reduced trading costs

• It eliminated dark pools

• It decreased transparency

• It led to more client inquiries

What is one of the ongoing challenges for the sell side due to increased transparency?

• Reducing the number of exchanges

• Eliminating all dark pools

• Increasing costs of best execution

• Decreasing regulatory costs

What has been a result of the increased scrutiny from regulators?

• Reduced trading costs

• Elimination of all ATS

• Increased consolidation among exchanges

• Decreased market transparency

What is a potential benefit of the increased client engagement discussed in the video?

• Increased number of dark pools

• Reduced market transparency

• Improved client workflows

• Simplified trading algorithms

What is one of the tangible outcomes for clients due to increased engagement?

• Higher trading fees

• More complex workflows

• Better tracking and analysis

• Reduced algorithm customization