Re:Study: High Speed Trading Hurts Long-Term Investors
by chrisaycock on Sunday July 29, 2012 @08:48AM
(#4308318)
That scenario would result in a locked market, which can't possibly happen under RegNMS. The exchange that saw the offer for $31.90 is required to route-out to the exchange with a bid of $32.
That also can't happen. Even without RegNMS, the exchange's matching engine would have paired the value investor with the offer of $31.90, though the execution price would actually be $32. The HFT participant won't even see the ask price in this scenario.
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