OUT OF CONTROL

[mawilson 2,133]

Or maybe it's more like battling cancer.

Seriously, that's your response?

[scandal 951]

Seriously, that's your response?

Just for fun, here's a study that says HFT reduces volatility and has a net positive effect on market liquidity and price discovery.

And here's another study that claims HFT increases volatility particularly in uncertain markets and is a net negative for market stability.

No, I haven't actually read them. Just the abstracts. Both studies from last year, 2010. Go figure. Academics . Those of us in trading firms generally have no time for such studies. We're too busy getting the trades on.

Actually, I think the whole focus on HFT is a bit misplaced. It's not even a well defined term. There's a lot of algorithmic trading that depends upon low latency market data and executions and smart-order routing, but which has holding times that are not in HFT realm- hours, even overnight positions and multi-day positions. That's still automated machine-driven trading. How does that fit into the whole story of "OUT OF CONTROL"?