In a don’t-miss blog post, Themis Trading, experts on the dangers of high frequency computer trading, takes issue with a new HFT report from an ostensibly independent think tank, Third Way. Themis takes on the claimed benefits of high frequency trading and points out where the report confuses the issues that make high frequency trading so dangerous.
Whether by design or accident, Third Way confuses HFT with electronic trading, and volume with liquidity. “Third Way’s Wrong Way on HFT” quickly debunks the new report and notes that the HFT industry’s goal “is to throw sand in the wheels of markets structure reform to keep the HFT cash machine going.”
Decision makers in Congress and agency officials probably already have their copy of Third Way’s report. Let’s hope they see the Themis post that takes the report apart.