HFT’s potential of investment companies
HFT’s potential of investment companies

Summary/Abstract: On Polish broker-dealers market 1908 investment-related entities and six registered exchange markets operate. High frequency trading (HFT) is a form of algorithmic trading based on massive orders executions. One of the key success parameters of HFT is the distance between the exchange and stock member mainframe. Based on the data from the Polish Financial Supervisory Authority licensing registers and geocoding data we computed the distances between the investment related entities and exchanges. We analyzed their geographical presence in terms of types of entities and their region of origin. We found out that out of 1908 participants six have substantial HFT’s competition advantage on Warsaw Stock Exchange. The substantial tendency for HFTs among the external stock exchanges is with the commodity market. The potential development of the Polish HFTs is likely to be significantly concentrated.

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