Katsuyama On Difference Between “Predatory HFT” vs. “Market Makers”

Faster trading does not lead to investors obtaining the best price for stocks, according to a study by European academics who considered the NASDAQ OMX Group, Inc. (NASDAQ:NDAQ) trading venue. Study notes increase in cost with faster trading The study, led by University of Amsterdam’s Albert Menkveld and reported in Bloomberg, noted that when NASDAQ OMX Group, Inc. (NASDAQ:NDAQ) upped the speed in markets in Copenhagen, Helsinki and Stockholm in 2010, it ignited a heightened pressure on market maker profits, which actually widened the cost to investors. Katsuyama differentiating between market makers and HFT bandits The study uncovered a little discussed yet…