Norway’s Sovereign Wealth Fund on HFT

Oyvind G. Schanke (New York Times)
Oyvind G. Schanke (New York Times)

Norway’s sovereign wealth fund Norges Bank Investment Management has released a new report about high-frequency trading (HFT). NBIM’s report finds that HFT firms front-run the large orders of asset management firms; that there is “transient liquidity” due to cancelled quotes; and that exchanges benefit “low latency ultra HFT strategies.” NBIM trader Oyvind G. Schanke told The New York Times: “It has become much more a market trading for trading’s sake.”