HFT

A lot of folks—many who should know better—have jumped on the controversy surrounding HFT that erupted with the publication of Lewis’ book and accepted some pretty serious charges as fact.
The European Union Court is expected to reject UK’s challenge to the transaction tax during its ruling on April 30.
May Editor's Note from Dan Collins.
Irene Aldridge, managing partner at ABLE Alpha Trading, discusses her issue with Michael Lewis’ claim that the market is “rigged."
For those hiding in a cave, the controversy over high frequency trading is no longer an inside baseball story and its defenders sharpen up their game as powerful forces want answers.
I found Mr. Lewis’ non-fiction account of high frequency trading more like a novel than the factual account it purports to be. Many times, Mr. Lewis takes the mundane and ordinary but through exhilarating manipulation of language makes it seem illegal.
The CFTC and its enforcement division are reviewing trading practices in the futures market to ensure they aren’t manipulative, Wetjen said. The agency is also reviewing relationships between exchanges and trading firms, he said.
No one really has a good definition of what high frequency trading is, which can cause misconceptions.
We doubt that these old-school managers were truly better off in the pre-HFT world, but it's hard to prove either way. And if they're right, it may be only because HFTs have made the markets more efficient
Author Michael Lewis’s argument that U.S. stock trading is rigged reflects a misunderstanding of how the market operates and its history, said Bill O’Brien, the president of exchange operator Bats Global Markets Inc.