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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April 21, 2005

The NASD's Nasdaq Promise

By Gregory Bresiger

NASD, aware that the SEC is looking closely at possible conflicts within SRO structures, says it will quickly shed its Nasdaq ownership. In a footnote to its comment letter on the various SEC SRO proposals, NASD said it will divest itself "of any meaningful ownership interest in Nasdaq prior to the effective date of any rules the Commission may adopt in this area."

And NASD wrote that, after Nasdaq achieves exchange status, it may continue to hold a "temporary, residual interest" in the exchange. But that "interest would not give rise to the types of conflicts of concern to the Commission, particularly given that NASD would not control or operate Nasdaq."