Britain's Treasury recently commissioned a study on the effect of high-frequency traders on markets.
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High-frequency traders argue they've lowered trading costs for consumers and made markets more efficient.
We saw that in 1987, too, even though high-frequency traders were not yet on the scene.
They can start by making markets coordinate and making high-frequency traders maintain orderly markets.
That made it harder for specialists to compete with other traders, most especially high-frequency traders.
Senator Kaufman and others have been advocating for more information about these high-frequency traders.
These high frequency traders make up an estimated 60% of daily market volume during ordinary trading.
Many of the high-frequency traders have their machines in locked cages, for fear that someone might snoop.
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Their chief economist, Andrei Kirilenko, maintains that high-frequency traders are profiting at the expense of smaller traders.
Just like in a casino the house always wins, in Apple stock high frequency traders always win.
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Over the past two years, however, high-frequency traders become an increasingly controversial, often dominating trading and reshaping markets.
High frequency traders and investment managers are seeking alpha wherever they think they can find it, said Casey.
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An order can bounce around various venues as high-frequency traders move liquidity around.
Algos and high frequency traders increase the speed and magnitude of the move.
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False market depth was created by high frequency traders and arbitrageurs who traded relentlessly but only accumulated small inventories.
Many believe that last year's extreme market volatility was heightened by high-frequency traders.
Manoj Narang of Tradeworx, argued that high-frequency traders create liquidity and hold less capital than a mid-size hedge fund.
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He is talking about normal trading latency, not the millisecond or microsecond latency that high frequency traders (HFT) pursue.
The burden would fall mostly on high frequency traders while having minimal impact on long-term investors such as pension funds.
In my interview with Senator Kaufman in January, he noted that no one seems to know much about high-frequency traders.
So who are these high-frequency traders that some call nefarious and others consider them to be the next market makers?
The strategy also has come under heightened scrutiny amid concerns that some high-frequency traders were gaining unfair advantages in the market.
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That raised public awareness of the risks related to the emergence of high-frequency traders as a major force in financial markets.
High frequency traders, using powerful computers to trade in nanoseconds in high volume, are courted by exchanges because volume equals profits.
Jitter is anathema to high frequency traders because when the markets reach peak volumes the prices can be their most volatile.
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Why should Aunt Sadie try to compete with High Frequency Traders who are somewhere between 50% and 62% of total market activity.
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The SEC is proposing a ban on flash trading along with other issues grabbing headlines, like direct market access for high-frequency traders.
But some of the advantages that accrue to high-frequency traders look unfair.
High-frequency traders create liquidity and lower costs, which is good for investors.
Others are demanding an end to some favorite practices of high-frequency traders, like offering bids for shares that last only a few milliseconds.
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