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A comment on A veteran programmer explains how the stock market became “rigged”. Parent comment

Re:A veteran programmer explains how the stock market became... by yxhuvud on Monday April 07, 2014 @07:44AM (#7545885)
A transaction tax will increase spreads. That is a really big argument against that such an exchange would be popular.
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Re:A veteran programmer explains how the stock market became... by crdoconnor on Monday April 07, 2014 @08:03AM (#7545939)
HFT did not reduce spreads. electronic trading did. actually sometimes hft can be a liquidity taker and thus increase spreads.
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Re:A veteran programmer explains how the stock market became... by hft_throwaway on Monday April 07, 2014 @09:19AM (#7546285)
I don't know where this meme started, but it's clearly untrue. Nanex likes to make this claim, but they claim "HFT" only started with Reg NMS in 2007. Tell me this doesn't sound like the most stereotypical HFT-style trading in 2005: http://www.bizjournals.com/kansascity/stories/2005/01/17/sma...

And it wasn't just Tradebot doing it. There were many firms already active with similar styles in the early 2000s like GETCO, ATD, Madison Tyler (now Virtu) and a bunch of smaller guys. HFT does not depend on Reg NMS, fragmentation, or rebates. HFT firms are super successful in futures markets with a consolidated limit order book and fees for both sides of the transaction.

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