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narkee | 9 years ago

Wait, isn't that the entire point of high-frequency trading and their low-latency access to markets?

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harmegido|9 years ago

1) HFT is more than just US equities. Many exchanges are open 23 hours a day.

2) Many HFT firms do not specialize in 'news-reading'. That is, they will sit out periods when an expected announcement is coming. You can observe this by looking at the liquidity of a product just prior to an expected relevant news release - there will be very few orders.

3) There are more events than just news events that require speed.

lmm|9 years ago

Sure - market-makers need to react quickly. But that's only during the hours when the market is open. If there's no market, no-one needs to be quick about it.