High-frequency traders made a record profit of $60m on August 8, during a 635-point Dow plunge and the NYSE’s fourth-busiest ever trading day, the WSJ reports. If this level of profit could be repeated across 2011, the figure would be $15bn, compared to $7.2bn made by HFT firms in 2009, according to Tabb data. While high volumes led to rick picking for profit, traders said that statistical arbitrage funds and HFT firms specialising in market-making had done especially well. A pair of funds run by Renaissance Technologies have racked up $200m of gains in August, leaving them up 5.9 per cent for the month so far.

This entry was posted by Joseph Cotterill on Tuesday, August 16th, 2011 at 10:23 and is featured in The Closer (16 Aug 2011), The Lunch Wrap (16 Aug 2011) . Tagged with Equities, Hft, High frequency trading, volatility. Edit this entry.