DarkSteven
Posts: 28072
Joined: 5/2/2008 Status: offline
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First off, a huge IF: The quoted article is from prison planet, which I consider less than reliable. So my response is IF the article is true (and that one of the HFTs was claiming to have never have had a losing day in four years, even on days that the market tanked, makes me think it's suspect). I don't consider high frequency trading to be beneficial to the market and the US as a whole. If there is a quirk in a program, it could crash the system more quickly than any human could realize that there's a problem. It also makes it damn tempting to do insider trading because forty transactions in a day, most worth a fraction of a percent, could be a very effective screen for the one illegal trade that nets a thirty percent gain. Normally, I'm against regulation. But I'd support something stating that electronic transactions would have to be held a minimum of half an hour while there would be no restrictions on human transactions that couldn't crash the whole system.
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