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Do HFT firms violate "wash sales" and "settlement time" rules?

High frequency trading (HFT) became popular on Wall street, where big firms buy/sell shares in few microsecons (see nice book "All About High-Frequency Trading" by M. Durbin). The name HFT is funny for me because I handle 1 nanosecond pulses (1us=1000ns) at my work.... but  I have two not so funny concerns:

Do HFT firms violate "wash sales"  and "settlement time" rules?

As you know wash sale is a buying identical stock after sell of initial stock with some losses early than 30 days ofter the sale, while settlement time rule forbid to use money prior a stock trade date plus 3 business days. 

How can SEC and IRS be sure that HFT firm not violate wash sale rules while executing a hundred trades a second? Aren't they have any losses?

I did see few years ago an academic paper (probably writtten before HFT) analyzed profitability of (as far as I remember) mutual funds (or other big traders) due to "3 days" rule  violation in so-called "special situations".

I think that this "3 days" rule should be changed. I hardly imagine that in modern computer network world a settlement time exceeds 1 minute. But until this rule is  modified all small and big traders/investors must be treated equally.

Any comments?


Disclosure: No positions