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> Perhaps Texas could use a different trading model that doesn't require ultra high speed trading

Wall Street (as in the sell side) is strongly incentivised to stamp out high-speed trading. It undercuts their dealer model. They have tried and failed to come up with an auction model that eliminates HFT without tradeoffs that real investors find unacceptable.



Didn't HFT compete itself out of outsized profitability years ago? So now we get instant super liquidity for pennies?


For stocks most likely, though I assume a lot of it today comes from options traders, where the spread is much wider.


> Didn't HFT compete itself out of outsized profitability years ago?

No

> So now we get instant super liquidity for pennies?

Not pennies yet. Still dime and quarter range.


Last I checked, the spread on SPY is on the order of <1 basis point.




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