New York Fed Observes Cross Market Treasury Trading During Crisis, Eyes HFT

It seems almost ancient history to recall Chicago derivatives traders sitting at a desk above a less significant trading floor playing a daily game of spread-arbitrage along the yield curve with the cash markets in New York. Now in the span of time it takes a human to point and click on a computer a high frequency trading algorithm could have bought and sold the same strategy 100 times over. New York Fed: Cash and futures markets viewed as one from price discovery standpoint Back in the ancient days of trading, just over a decade ago when humans were generally…