Wall Street players have lately expressed concern that too much regulation of high-speed trading could crimp markets.
High-speed trading has chased nearly every distortion out of the market, other than the ones created by traders themselves.
Beyond the official scrutiny lies a tussle among exchanges for market share as high-speed trading becomes a central cog of the market.
The Securities and Exchange Commission has launched an in-depth study of issues surrounding high-speed trading and is considering several proposals to monitor it.
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Although the financial industry likes to think of itself as a technology leader, outside high-speed trading it frequently lags behind other industries, said a regulator.
High-speed trading has made the financial world even more of a casino game, allowing traders to pick off minuscule price movements in just thousandths of a second.
The U.S. stock market "is the most dynamic and efficient market in the world, " Chris Concannon, executive vice president of Virtu Financial LLC, a New York high-speed trading firm, will tell the Senate panel, according to his prepared testimony.
Now it's become an obsession of the financial industry, to serve the needs of high-speed automated trading, where computers arbitrage based on knowing the market news an extra millisecond in advance.
The dominance of short-termism is evidenced by the magnitude of institutional stock "renting" for terms of 12 months or less, the volume of high-speed, high-frequency algorithmic short-term trading, the short average tenures of chief executive officers and the dominance of executive compensation tied solely to short-term results.
Later, Mr. Lauer, with several other Citadel traders, moved to the high-speed Chicago firm Allston Trading.
The speed and efficiency of the Equiduct model, specially designed for high-frequency trading of equities in the fragmented European market, is attracting institutions and bringing new players onto the market, says Fischer.
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