7(1) 2021: Laborious Play and Playful Work II

Browsing 7(1) 2021: Laborious Play and Playful Work II by Subject "High-Frequency Trading (HFT)"

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  • Article
    Speedrunning the Financial Markets: A Comparison of Gaming Culture and High Frequency Trading
    Curry, Derek (2021) , S. 75-90
    This article compares high frequency trading (HFT) practices and video game cheats to explore the potential of using video game culture as a proxy for understanding a secretive and proprietary financial culture. While there is no legal or agreed upon definition for what constitutes HFT trading, it always involves the use of ultra-fast com- puter hardware, software, and network connections to gain a speed advantage over other traders in the marketplace. Likewise, in video game culture, there is no universal agreement as to what constitutes cheating. While some gamers believe any form of external help is a form of cheating, others accept the use of cheat codes, glitches, addi- tional hardware, or external guides as just another part of a game. Like gamers, HFTs use special hardware and cheat codes, and exploit glitches and software bugs to alter the rules for how a game is played. In gaming culture, certain forms of cheating are consecrated by online communities and game companies that supply guidebooks and cheat codes through official, or quasi-official channels to increase interest in certain games. Courts in North America have also ruled in favor of cheating device makers in copyright lawsuits. Similarly, many online exchanges cater to HFTs because their enormous volume of trading generates a revenue stream for the exchange, and some HFT practices have been codified by regulators who view HFTs’ role as middlemen to be a stabilizing force in the markets. Research has found that how gamers use cheats and glitches often translates into attitudes toward cheating behavior in academic contexts or the workplace. A compari- son of HFT with game culture can reveal broader social implications and serve as a proxy for understanding HFT trading strategies for readers without a background in financial technology.