This week on our Masters in Business podcast, we speak with Keith Ross, chairman and CEO PDQ Enterprises, a Dark Pool and ATS firm specializing in a form of unique inverse auctions. Previously, he ran Getco, one of the largest HFT forms (Getco purchased Knight Trading last year for $1.4B).
In our conversation, we discuss what High Frequency and Algorithmic trading are, what they mean to for institutional trading, changes in Market Structure over the past 30 years, and what the proper role of the Exchanges should be.
We go deep into the weeds on the wonky subject of High Frequency Trading (HFT), whether HFTs are superior to Specialists, and the plusses and minuses of Fragmentation. We also head deeper into wonkville on issues of Co-location, Packet-sniffing, Spoofing, Quote-stuffing and Walking away. I would be remiss if I didn’t bring up front running as well. If you are a student of market structure or institutional execution you will find the conversation illuminating.