> The money is generally coming from value generation or value extraction. This is the crux of the matter, a critical assumption. It breaks at many places. On

> The money is generally coming from value generation or value extraction. This is the crux of the matter, a critical assumption. It breaks at many places. One can make a boat load of money by predicting market movements slightly better. The value produced is not zero, but does not seem proportionate. The size of the HFT market seems disproportionate to the value they purportedly produce by removing microsecond scale inefficiencies in the market. A bulk of the futures and options market is not from hedging but just gambling, it's not creating value, at least not in any proportionate sense.