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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May 26, 2005

Is it Good News for Nasdaq?

By Gregory Bresiger

The Reg NMS trade-through rule extension was a "non-event." It may help electronic trading firms that are interested in obtaining more Big Board listed business. That's what several trading executives privately told Traders Magazine.

The trading executives, conceding that the ideal would have been the abolition of the rule, said the next best result was applying the rule to all markets. Joe Gawronski, chief operating officer for New York Stock Exchange floor broker Rosenblatt Securities, said the controversial decision was moot for electronic competitors of the NYSE. That's because they already have smart order routing. And he adds that the NYSE, in the course of defending the rule, was forced to commit to a hybrid system. That model will give electronic players a better chance to compete. The Big Board, however, dramatically undercut potential competition when it announced its merger with Archipelago Holdings.