Re:Putting the Brakes on High Frequency Trading
by dlauer on Wednesday October 03, 2012 @10:10PM
(#4610589)
I would like to say that I was misquoted in this op-ed. I have never said that "high-speed technology was “a destructive force in the market” with “no social benefit.”" I said that there is a limit to the benefit of speed, and we're finding that the latency race to 0 has found that limit.
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Re:Putting the Brakes on High Frequency Trading
by elfinlike on Wednesday October 03, 2012 @11:09PM
(#4610724)
I believe this is the entire quote: "The new electronic marketplace has several structural inefficiencies. These are what have permitted HFT to become a destructive force in the market, rather than a passive liquidity providing mechanism. This should not be construed to say that all HFT is bad, but there are 2 important points to make – the structural inefficiencies present in the market have created a massive misallocation of resources into technology that provides no social benefit, and structural deficiencies in market structure have allowed for nefarious or accidental actions to disrupt the market". I agree there are some contextual problems with the citation in the article. Retrieved from http://banking.senate.gov/public/index.cfm?FuseAction=Hearin...