ASIC has said its updated analysis of high-frequency trading (HFT) shows the level of HFT in Australia's equity markets has remained steady at 27% of total turnover. While HFT has grown 130% in the futures market since December 2013, ASIC said the levels are not currently concerning.
The regulator also said that predatory trading by high frequency traders did not appear to be "excessive".
"Some institutional investors have become more sophisticated, increasingly managing their own order flow and execution decisions so they can limit interaction with predatory traders and improve their trading outcomes," ASIC said.
Overall, ASIC said sentiment toward the practice had become less negative as market users become better informed and equipped to operate in an electronic and high-speed environment.
Negative sentiment about high-frequency trading has abated as users become better informed and equipped, ASIC has said.