Yes, HFT provides liquidity to capital markets, reducing transaction costs of financing. The social benefits here can be a bit hard to see, but they are certain

Yes, HFT provides liquidity to capital markets, reducing transaction costs of financing. The social benefits here can be a bit hard to see, but they are certainly real. When HFTs make money, it's because they're buying low and selling high. That means that they are making prices slightly more efficient for the next person to come along, which in turn means that that next person gets a slightly better more accurate price.