“Like any significant technological innovation, high-frequency stock trading has had a polarizing effect on the industry it has changed forever.
“To its advocates high-frequency trading — the use of sophisticated computers to trade large amounts of stock at extremely high rates of speed — is a paradigm shifting, revolutionary leap forward. To its detractors it’s an unregulated badlands teeming with outlaws and bandits. The reality, of course, lies somewhere in between.
“Peter Nabicht is a former executive at high-frequency trading (HFT) firm Allston Trading who now touts the benefits of the innovation as a senior advisor for an industry group called Modern Markets Initiative.”
“Dennis Kelleher, chief executive of Better Markets, an advocacy group that supports increased market transparency, strongly disagrees.
“Only people getting paid by high-frequency trading firms talk about the ‘benefits’,” said Kelleher. “There are mountains of evidence that market manipulation and abusive practices are rampant” among the ranks of high-frequency trading firms.”
Read full Fox Business article here.