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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June 20, 2005

Bargain Basement Trading

By Gregory Bresiger

The cost of conducting business will decline a bit beginning in October. That's because Section (31) fee rates will be going down this fall by about 27 percent. They will decline from $41.80 per million dollars to $30.70, according to the Securities and Exchange Commission.

The Section (31) fee-which generally applies to exchanges and over-the-counter markets-is used to finance the costs of regulation. It was reformed several years ago to ensure that the fee didn't take in more money than was needed to fund regulatory costs.

When trading volume is rising, the rate usually can be cut. And when the reverse happens, it usually rises, according to a spokesman for the Securities Industry Association.

"The rate cut shows that the system is working and that firms aren't paying more than they should," he added."And that's a good thing."