Comment by raspasov
6 months ago
Sure, the market, but HFT is relatively tiny as a market and the profit it brings. Not to mention, it's essentially a zero-sum game.
Brought to you by your favorite Google LLM search result:
"The global high-frequency trading (HFT) market was valued at USD 10.36 billion in 2024 and is projected to reach USD 16.03 billion by 2030"
(unverified by a human, use at your own risk).
>"The global high-frequency trading (HFT) market was valued at USD 10.36 billion in 2024 and is projected to reach USD 16.03 billion by 2030"
>> (unverified by a human, use at your own risk).
Honorable for mentioning the lack of verification; doing so would have dissolved the AI's statement, but jury's out on how much EXACTLY:
Per https://www.sciencedirect.com/science/article/abs/pii/S03784...:
"While estimates vary due to the difficulty in ascertaining whether each trade is an HFT, recent estimates suggest HFT accounts for 50–70% of equity trades and around 50% of the futures market in the U.S., 40% in Canada, and 35% in London (Zhang, 2010, Grant, 2011, O’Reilly, 2012, Easley et al., 2012, Scholtus et al., 2014)"
In my original reply, I used the literal median of that spectrum @ 60%
Jane Street - who has recently found themselves in hot water from the India ban - disputes that AI summary ALONE. Per https://www.globaltrading.net/jane-street-took-10-of-of-us-e... , Jane Street booked 20.5B in trading revenue, primarily though HFT's, just in 2024.
Brought to you by someone who takes these market movements too seriously for their own good.
20 billion is a tiny fraction of the value represented in the stock exchange (and a tiny fraction of the profits made on it). HFT by its nature makes for a lot of volume but that's just a lot of shuffling of things around to peel a tiny fraction of value off the top, it's far from driving the market and the market isn't what makes the value in the first place.
Revenue is not profit