[stevenhuang]

Everyone benefits with more efficient markets.

It is easy to fall into the trap of thinking HFT/low frequency quant firms "leech wealth".

You can get out of the trap by learning about what they do and the essential role they play in the proper functioning of our markets.

[bmitc]

It's an intentionally naive position to say that places don't leech off of others. Even large places like Fidelity and Schwab that respect customers aren't just keeping people's money in vaults. They literally take your checking, savings, retirement accounts, etc. and make money off of them while they "sit".

Firms specialize in intercepting trades and then placing trades faster than 99.9% of others.

These institutions hide behind "we provide liquidity" like it's a selfless act of kindness, whereas that's just a mere side effect, and just one of many.

The entire modern financial system is layers and layers of unneeded complexity that almost solely rose out of people trying to leech money from the system. These financial institutions have built the entire system around them so that now they can say "look at how essential we are!".

[KellyCriterion]

> aren't just keeping people's money in vaults. They literally take your checking, savings, retirement accounts, etc. and make money off of them while they "sit". <

depending on jurisdiction and TOS, this maybe legal, but it needs to be announced somehow to the customer; a capital management firm of an ETF needs to buy the included shares, e.g; those have no money "sitting around"?

[bmitc]

Sure, it's announced and by contract. But where else do you have to put your accounts?

[stevenhuang]

It can both be true they provide a necessary service and that unfair financialization exists.

We are not in disagreement.

But it is ignorance to say the system would work better without any involvement of HFTs.