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A comment on The high-frequency trading arms race: frequent batch auctions (2015). Parent comment

Re:The high-frequency trading arms race: frequent batch auct... by HWR_14 on Tuesday October 19, 2021 @12:01PM (#28919628)
So your contention is that HFTs make prices more stable? That they somehow assume risk and that justifies their profits. How would that work? I thought HFTers only got involved in between two parties when they knew they could make a profit. That's why HFTs don't have days when they lose money.
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Re:The high-frequency trading arms race: frequent batch auct... by harryh on Tuesday October 19, 2021 @12:53PM (#28920331)
I thought HFTers only got involved in between two parties when they knew they could make a profit.

You thought wrong. While there are a variety of things that HFT firms do, most of it is market making.

https://en.wikipedia.org/wiki/Market_maker

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Re:The high-frequency trading arms race: frequent batch auct... by HWR_14 on Tuesday October 19, 2021 @08:06PM (#28925293)
Those market makers are known, formal and regulated. HFTs are none of those.

Well, I guess semi-regulated.

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Re:The high-frequency trading arms race: frequent batch auct... by harryh on Wednesday October 20, 2021 @09:03AM (#28930145)
The big HFT firms are, in fact, well known.

https://medium.com/automation-generation/15-well-known-high-...

They're also regulated in various ways.

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Re:The high-frequency trading arms race: frequent batch auct... by kasey_junk on Wednesday October 20, 2021 @06:04PM (#28937382)
In fact all of the nyse designated market makers are HFT firms.

https://www.nyse.com/markets/nyse/membership

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