The Trade discusses what's next for HFT
/An interesting article written by the Trade highlights something we've been touching on a couple of times as well. HFT is not as flashy as it used to be and is looking for new business models to still be relevant in the future.
Little to add to the article, it's a good read. Only thing is that it is perhaps time to get rid of the 'HFT' term period. The companies that have traditionally been identified as HFT, hardly ever saw themselves as that. HFT is a strategy (a combination of technology and algorithms) and has never been the entire business model of the trading firms implementing it. Now that the profitability of the strategy may have peaked, it might be time to see how the 'materials' used in these strategies (the technology, the risk management, the people etc) can used in other business models.