High Frequency Trading (HFT) is one of the most reckless activities being tolerated in public markets today. We likely need to see another major crash or two before the practice is finally banned or more likely taxed into remission, but the end of HFT is coming. I believe we will be looking back on this practice years from now and marvel that a handful of firms were allowed to use and abuse the utility of publicly traded markets as their personal game of roulette for so long. For the real world, these rigged speculations are all our risk and no reward.
“European Central Bank policymaker Ewald Nowotny called on Thursday for a regulatory ban on high-frequency trading, saying the technique of using computer algorithms to generate multiple high-speed trades had no practical value.”