6  BIS central bankers’ speeches  High-frequency trading does not have a presence in the physical bond market while it has a modest presence in the bond futures market, growing to around 15 per cent over the past few years. That said, high-frequency trading activity in the domestic market is often concentrated around particular events, most notably the bond futures rolls.
The share of high-frequency trading around the futures roll can be considerably higher. The presence of high-frequency traders can reduce the costs, in terms of spread, of transacting small parcel sizes. There is evidence of that occurring in the domestic market. But, high-frequency trading firms do not hold trading positions for a long period of time.