Monday, March 4, 2013

High-Frequency Trading Less Profitable, Less Prevalent

Average daily volume on the nation's equities markets is down from 9.75 billion shares in 2009 to 6.45 billion shares in 2012.
And with it, so has the volume of trading and profits made by high-frequency trading firms plunged, according to Rosenblatt Securities, an agency broker that tracks off-exchange trading.
High-frequency trading accounted for 66 percent of equities trading in 2009, according to statistics presented by Rosenblatt managing director Justin Schack at the TradeTech 2013 conference at Pier 60 in Manhattan Thursday. Now, that is down to 50 percent.
Average daily volume for such high-speed market makers and automated trading firms has dropped from 3.25 billion shares a day to 1.6 billion in that period.
And profits have dropped from $0.001 to 0.0015 a share to $0.0005 to $0.00075, Rosenblatt estimated.

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