High frequency traders use powerful computers and algorithms to rapidly execute a massive number of trades per day. This liquidity improves exchange competitiveness and provides some market safety. Because of this, exchanges are willing to pay a rebate to Supplemental Liquidity Providers (SLPs) for their actions. Major SLPs include Tower Research Capital, Citadel and Virtu Financial. For other market participants, high frequency traders can provide better execution in the form of better liquidity and lower bid-ask spreads. #highfrequencytrading #equitymarkets #equities #marketcommentary #marketanalysis #cfainstitute
6 сен 2024
