Buy-Side High-Frequency Shop Chooses DMA Over Sponsored Access

摘要

Not every buy-side firm conducting high-frequency trading is choosing the sponsored-access route. "We are absolutely not doing sponsored access or naked access," explains Eric Pritchett, CEO of PhaseCapital, a private investment adviser in Boston that currently is advising one systematic high-frequency hedge fund. Instead, he says, the firm has chosen a direct market access (DMA) arrangement. "Naked access" refers to a buy-side firm connecting its black box or algorithmic logic directly to the matching engine of a market center without any risk monitoring by the sponsoring broker.