Nanex Research
When HFT goes away, so do all the problems.
The following charts highlight two separate events where a sudden drop-off in HFT
quote spam leads to a period of tighter and more stable quote spreads and
a significant decrease in momentum ignition events. That is when certain HFT algos stop, so do many short-term problems. Stability
and fairness returns to market prices.
Note the area between the two vertical black lines in each chart.
Nanex Research