Commentary

Tim Quast
Traders Magazine Online News

We're All HFTs Now

In this guest commentary, author Tim Quast looks back at the history of HFT and how the market has evolved to where many firms now fit the definition of high-frequency trader.

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March 1, 2002

Quantity Not Enough

By Gregory Bresiger

The Investment Counsel Association of America (ICAA) is skeptical of some of the best execution guidelines issued by the Association for Investment Management and Research (AIMR), a group which puts too much emphasis on quantifying results, according to the ICAA.

The Charlottesville, VA.-based IIMR guidelines contend that best execution means, "well-informed trade execution decisions made with the intention of maximizing the value of client portfolios under the particular circumstances of the time."

AIMR recommends that firms measure performance.

"It is important to measure information in ways that facilitate comparisons: From period to period; against appropriate objectives and benchmarks (e.g. peer universes); and by broker, trading venue, and trading method," AIMR states.