High Frequency Trading Falls Out of Fashion

High Frequency Trading started in a modest way in a garage and saw its turnover rising from 9 percent of U.S. volume in 2006, garnering 60 percent market share in 2010 before its turnover dwindling to 6 million shares per day recently. Matthew Philips in his article published in Businessweek, chronicled the rise and fall of high frequency trading. High frequency trading is the use of automated strategies to churn through large volumes of orders in fractions of seconds. Steve Swanson, a 21-year-old computer nerd, enthused by his statistics professor Jim Hawkes, turned David Whitcomb’s idea into reality. He tapped…