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HFT needs to be outlawed. No exchange should allow trades to complete, I would argue in any time less than 15 minutes, and each trade should have a random 1-15
by AtlasBarfed 4y ago
HFT needs to be outlawed.
No exchange should allow trades to complete, I would argue in any time less than 15 minutes, and each trade should have a random 1-15 minute delay pad on top of that.
The HFT access only serve the larger financial firms, and are used to do frontloading and other basically-illegal tricks. It provides anti-competitive advantage to large firms for markets that are supposed to open access/fair trading. And of course it leads to AI autotrading madness.
I get that it keeps a lot of tech people very well compensated, but it is either in the service of unregulated fraud at worst and unfair advantage at best.
- rohith2506 4y agoI guess you are completely oblivious to how HFT's work and their actual position in the markets. I am a bit biased considering that I work in the industry but actually working in the industry gave me the inner workings of it and how actually they help to close / tighten the bid - ask spread for various securities. I would highly recommend you to read this book ( https://press.princeton.edu/books/hardcover/9780691211381/trading-at-the-speed-of-light https://press.princeton.edu/books/hardcover/9780691211381/tr... ) or if it's too long form, read this article ( https://www.thediff.co/p/jane-street https://www.thediff.co/p/jane-street ) I am not saying HFT's are in charitable business but they do serve an important role in the financial markets.
- jonahhorowitz 4y agoNot really germane to the topic, but a financial transactions tax would effectively kill HFT without the complexity that you're suggesting.