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The public see HFT as the poorest incarnation of Big Finance. How would you change this perception?
LMAX Exchange CEO, David Mercer, comments that the recent public perception of High Frequency Trading as being the poorest incarnation of Big Finance could be the result of particular journalistic approach and the reality is that HFT is here to stay. David states, the markets require liquidity and the best liquidity providers are the best high frequency market makers, who incidentally are situated in banks and proprietary trading firms with no differentiator. It could be public perception can be changed with a combination of greater education and more responsible journalism.
David Mercer, LMAX Exchange CEO, shares insights.
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Is the impact of HFT good or bad for the FX market?
LMAX Exchange CEO, David Mercer, states that the impact of High Frequency Trading is good for the FX market. There is no better time to be a customer in the market, the cost of trading has been driven down, allowing prices to become more accessible whilst providing a greater degree of price discovery than ever before.
David Mercer, LMAX Exchange CEO, shares insights.
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Do the new regulations create reluctant market makers?
LMAX Exchange CEO, David Mercer, comments that despite new regulations it is uncommon for market makers to be reluctant in the FX market. David states incentivising market makers is still yet to be encountered in FX and currently the difficulty could be perceived as the onboarding of buy side clients.
David Mercer, LMAX Exchange CEO, shares insights.
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“Flash Boys†– Rigged or Imperfect?
David Mercer, LMAX Exchange CEO, shares his thoughts on the recent book release of “Flash Boys†and the sensationalist views expressed by its author Michael Lewis. David Mercer comments, algorithmic execution is a part of high frequency trading (HFT) and that all market makers and exchanges engage in HFT. Exchanges are very transparent venues with everyone having a choice as to whether they trade there or on another venue, and the notion that an author has uncovered rigging in the markets is false.
David Mercer, LMAX Exchange CEO, shares insights.