Our Fragmented Market Structure, Alternative Trading Systems, Dark Pools, Algo and High Frequency Trading
We imagine our orders being sent to an exchange and executed by humans on noisy floors. While the market floor has always been an iconic image, it is as archaic as an 8-track tape. Today trading is electronic, low cost and done in millionths of a second. Even with an undergraduate degree or an MBA in finance, it doesn’t prepare you for the realities of how our equity markets work today. 6075% of equity trading in the US is done electronically by automated market makers, with algorithms, and high frequency quant models.