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High-frequency traders shift from speed back to strategy

Faced with diminishing returns and rising costs, HFTs are turning their attention to analytics and smarter trading initiatives to maintain an advantage

Wednesday, 1 November 2017 at 00:01

High-frequency traders shift from speed back to strategy
Photo: Getty Images

There is a dawning realisation among all asset classes, including foreign exchange, that a focus on speed is no longer enough to stay ahead of the game. Speed is progressively becoming a commodity and there has been a distinct shift away from simply looking for millisecond-advantages to utilising analytics to support smart, rather than just fast, trading decisions.

Over the past decade, there has been a rapid rise in the adoption of speed-based, low-latency strategies – reliant on the ultra-fast consumption of market data and access to the fastest technology and infrastructure for success.