The Accidental HFT Firm :: TabbFORUM – Where Capital Markets Speak
To many, high-frequency trading remains a mystery. According to Matt Hurd, it is simply the law of big numbers that lets an HFT make money every day. That same law dictates that if an HFT loses enough edge, it either ends up unable to trade, or it loses money every day. It’s a tough industry, plumbing the depths of market infrastructure and microstructure to improve its efficiency. In this article from the early days of HFT, Hurd offers a bit of his trading story, revealing some of the inner workings of the industry, and provides some advice for asset managers.