CCMR Pens New HFT Study

The CCMR makes a number of recommendations for the industry in the paper regarding HFT, citing statistical evidence that the trading style is neither confined to "HFT firms" alone, nor innately different than arbitrage strategies that were common in equities trading of the past. In fact, the report contends that "90 percent" of all market participants—including those entering as retail investors—now have access to HFT services.

The committee also argues that on a strict trading profit basis, HFT generally produces "an appropriate fee" relative to the liquidity it provides to the market, while certain unfair practices like spoofing should be easy to identify and punish by regulators due to their distinct order trail characteristics, particularly once the consolidated order trail (CAT) project gets off the ground.