HFT critics piling up

It has to be tough being a high frequency trader (HFT) right now. Not only does nobody outside of the trading world know what you actually do for a living, but a number of those who do know question whether HFTs should even exist. What's more, HFTs have quickly become the ultimate scapegoat for any trading problems that arise. The May 6 "Flash Crash" is a perfect example of the finger being hastily pointed in HFTs' direction.

While it is easy to claim HFT is just the next evolution of trading, it is hard to ignore some of the concerns some people have about HFT's impact on the markets. Although it is decidely negative, the below video does a good job bringing up some of the concerns that are out there about HFT.

To be fair, the video is a little over the top and many HFTs claim their actual trading is different from their market maker responsibilities and the video does not differentiate between the two. There are plenty of other things that can be said to the defense of HFT, but if nothing else, the video gives a good idea of how many people view HFT.

Note: We are not vouching for the varacity of the video, we merely found it interesting. We would love to hear what you have to say on the subject. Please leave your comments below.

About the Author
Michael McFarlin

Michael McFarlin joined Futures in 2010 after graduating summa cum laude from Trinity International University, where he majored in English/Communication. With the launch of the new web platform, Michael serves as web editor for the site and will continue to work on the magazine, where he focuses on the Markets and Trading 101 features. He also served as a member of the Wisconsin National Guard from 2007 to 2010. mmcfarlin@futuresmag.com

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