High Frequency Trading
topic on 7 shows · 9 statements across 9 episodes
the Neon Show 
Invest Like the Best 
Capital Allocators 
Top Founders 
the a16z Podcast 
All-In 
TBPN
9 statements about High Frequency Trading, every show
Wachen: Etched hired dozens from HFT over shared kernel-first philosophy
“And we've had dozens of people from high frequency trading join the team because they saw this philosophy too.”
CZ: Custom ASICs are rare in HFT because algorithms change too fast
“I don't think it exists on a very large scale. The mark I think the algorithms change too often.”
Tenev: HFT software cut institutional trading costs by 90-99%
“High frequency disrupt this institutional trading market because suddenly two guys out of MIT or Stanford in our case who could just write code could just disrupt everything. And run the trading book of an extremely sophisticated operation at basically one 10t…”
NASDAQ mandates equal cable lengths to equalize server colocation latency
“You know that on the NASDAQ, they have a rule where even if your server is closer, there's a thousand feet of cable between you and the main server, no matter what. So that everyone has a level playing.”
Kumar: HFT trading grew $20K-$30K into up to $3M in two years
“We started a high frequency trading operation where we took about 20, 30,000 dollars in savings and turned it into like two and a half, three million bucks. For the course of two years.”
Griffith: High-frequency trading is retail flow arbitrage, not genuine liquidity
“I'm not a fan of high-frequency trading, so I see it as an arbitrage on retail flows. I know people argue that they're providing liquidity. I don't believe it. It's a high-sharp ratio strategy. I don't like things where I think people are making money on almos…”
Kraus: Passive investing and high-frequency trading do not create price discovery
“Passive models do not discover prices. High frequency trading trades around prices, but it doesn't create price discovery. It creates liquidity, but it's not price discovery. It's not determining value.”
Eric Horesnyi: High-frequency trading speed advantages harm the financial ecosystem
“What we were doing was not necessarily good for the ecosystem.”