The software, riding on the many swings stock exchange these days, he did his job. He has taken on and off, almost always within seconds, thousands of orders. It is tucked into the thousands of aspects of the spread between purchase orders and sale of securities. In short, he exploited the volatility. Of course, the strategy is not exclusive to the flash traders. Many traditional investors make money with “tears” of the market. However, it is undeniable that the current environment is the most suitable for the High frequency trading (HFT). Operability that despite tight regulations, says a leading role. On Wall Street the flash boys are worth about 50% of the volume traded. The percentage goes down a bit ‘in Europe but is still significant. It settles to 40%.
The automated trading since 2004 has become increasingly important within the bags, reaching in 2015 to manage the 65% of trade in the US. In Europe the percentage is slightly lower (42%) but it still remains important, while robots have less weight in Asia (31%) and Latin America (25%). Asset classes in which the weight of the automated trading is greater are Equities (65% of trade handled by robots) and Futures (48%)
Taken from Il Sole 24 HOURS of 30.08.2015, page 5
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