A HFT that's trading bond futures may only have a handful of trades per day and hold for a long time because it's hard to liquidate effectively. Sometimes they just range all day.
Anyway my point is that it's wrong to think that HFT are going out of business with this change because it's a fundamental misunderstanding of HFT. There's almost always an ML component and always an execution component and these two skills are going to be critical to profiting off the new market structure. Citadel, Jump, Tower, you name it. I promise you they will be all over this new structure.
I completely agree, and they are going to use the same tools. The question is if this change is a net positive trade for the economy, and that I don’t know but I have heard reasonable arguments in favor.
Anyway my point is that it's wrong to think that HFT are going out of business with this change because it's a fundamental misunderstanding of HFT. There's almost always an ML component and always an execution component and these two skills are going to be critical to profiting off the new market structure. Citadel, Jump, Tower, you name it. I promise you they will be all over this new structure.