Trading Pennies Into $7 Billion Drives High-Frequency’s Cowboys

High-frequency firms are the rebellious new force in U.S. securities markets. Armed with algorithms and computers that shave milliseconds off the speed of a trade, programmers, math whizzes and even some former dot­commers have set up shop from Austin to Chicago to Red Bank, New Jersey. These firms don’t analyze a company’s value or bet on financial news. They use computers to scour public and private markets for deviations from historical prices and leap on discrepancies, rather than betting on the value of a company, currency or commodity. (Bloomberg)



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