> Certain types of market manipulation are encouraged by exchanges in order to provide liquidity. This is unequivocally false, and we can’t look just past this

> Certain types of market manipulation are encouraged by exchanges in order to provide liquidity. This is unequivocally false, and we can’t look just past this claim because it’s “secondary to your point.” High frequency trading (and market making in general) isn’t market manipulation. The paper you’re citing uses pejorative terms like “exploiting” and “scalping”, but to the extent that HFT “exploits” market microstructure, it’s just rapidly buying and selling securities. This is not market manipulation; on the contrary, the decreased latency and increased trading volume actually improves both net liquidity and price discovery.