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Your comment may have been the first time I have literally laughed out loud reading EuroTrib.

You mentioned high-frequency trading.  The media storm that Flash Boys provoked scared the hell out of me.  But I guess the verdict is still out on HFT's risk/benefit ratio?  My own hunch is that it's way more devil than angel, but I am just a layperson reading the popular press:

"The subject of the stock market right now is so complicated that it would not surprise to me to learn that within the SEC they're arguing with each other about how it actually works. I don't think there's a clear picture," he [Michael Lewis] added.


Point n'est besoin d'espérer pour entreprendre, ni de réussir pour persévérer. - Charles le Téméraire
by marco on Wed Mar 25th, 2015 at 07:46:13 AM EST
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High-frequency trading has no correlation to raising money for investment (that should be the reason for issuing stocks) not even as a means to create liquidity for investors that wants out (which in an ideal world is the stock markets function). It is all just creating froth and skimming it.
by fjallstrom on Wed Mar 25th, 2015 at 07:57:01 AM EST
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Foremost, HFT is about "punishing" those smaller traders who want to buy or unload more than a few packs of some stock. Just when you hit the "trade" button, the price moves against you... More advanced versions simulate this naive behavior with phantom orders (that they would take away in microseconds if you try to call the bluff on a slow platform) and then cash in on the first level algorithmic reactions, etc. With HFT, stocks can be moved with far less own volume. Technology is developing fast.
by das monde on Wed Mar 25th, 2015 at 08:38:22 AM EST
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