HFT firm Potamus Trading shut down its trading business in January 2018 to work as a broker-dealer for asset managers.
The brokerage fills client orders by working both sides of the quote, like a market-maker, as opposed to only buying or selling the stock.
Potamus doesn’t charge a commission fee, taking a share of the profit made from the market-making done to fill the order.
Asset managers and high-frequency trading firms haven’t always been the best of friends. The two sides, in many ways, are the polar opposites of each other.
The former, which often handles a large contingent of Main Street money, is not typically the most innovative with technology. It’s slower moving in the markets and interested in long-term investments.
Meanwhile, HFT firms use some of the most cutting-edge tech, looking to shave milliseconds off how quickly they can trade. Unlike large investors, their goal is to move quickly in and out of stocks, never holding a large position one way or another.
But one former HFT firm has looked to cross the aisle, using its expertise and technology to partner with big investors trading larger stock orders without having the market move against them.
Potamus Trading shuttered its proprietary HFT business …read more
Source:: Businessinsider – Finance