Indian exchanges will benefit from HFT , but they need to tread with caution

High Frequency Trading (HFT) is a subset of Algorithmic Trading (AT) in which timing, price and order execution are done without human intervention. HFT has grown to reach about 40 per cent of the total trades in India. It is likely to be the dominant mode for trading in the near future. In this context, there are some regulatory concerns, as HFT becomes prolific. High frequency trading hunts ...