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For all those people that consider this a good idea, have you ever really considered what high-frequency traders do for the market? High-frequency is a signifi
by BrentRitterbeck 16y ago
For all those people that consider this a good idea, have you ever really considered what high-frequency traders do for the market? High-frequency is a significant source of liquidity. Had high-frequency not been place during the financial crisis, the drops would have been much more significant than what we actually saw. Congress and the American public don't seem to understand this. If you pull the plug on high-frequency trading, you are pulling the plug on automated market makers, and the less market makers there are, the wider the spreads will be and the more volatile the markets will be. Now, I'm not saying that all high-frequency is market-making, but it surely a significant portion of it.