High Frequency Trading removes liquidity from markets

Hedge fund giant John Taylor says the “strange thing” is high frequency trading takes liquidity out of the market. Taylor and Paul Richards, UBS head of global FX, explain why they expect further weakness in the Euro ahead.

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One Response to High Frequency Trading removes liquidity from markets

  1. HFTstudent says:

    Noting that there is a tight market on small ammounts and a wide market on big amounts is as old as the hills. IOIs have always been used for block trades. Institutional trades have likewise always been done off market and in the favor of the liquidity provider. The only exception is the retail guy with no market transparency who used to get rooked on the price by his broker – which has been illegal for a very long time.

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