Arguments against HFT

BornToBeTrader · May 10th, 2010, 4:05 am

Many critiques of High Frequency trading are calling flash trading a very unethical/illegal practice and are hoping that they can pass the bill so that it can be banned. I agree that front running shouldn't be allowed.However, some people have also pointed fingers (Joe Saluzzi) at collocation services, and rebate trading? Can anyone please share why are people against these?Also, can anyone in general share some thoughts on why HFT should not be allowed?

Hansi · May 10th, 2010, 8:33 am

A bunch of views can be found on zerohedge and the Thermis trading blogs.

BornToBeTrader · May 11th, 2010, 2:43 am

Thanks for those Hansi.

axsaxs · May 12th, 2010, 1:52 am

they are against HFT because they are becoming obsolete. HFT itself is just media hype which means the time to really do it was 8 or 10 years ago

BornToBeTrader · May 13th, 2010, 8:00 am

Well axsaxs,I guess you are right. More and more firms are trying to enter the arena now. But that doesn't mean there's no more money in it? From what I know, FX and FX Options, and commodities still have big room for improvement when it comes to HFT. Most of the research/enhancements wrt this topic have been done in equities.