4 ms·

I doubt that HFT traders really engage into frontrunning or market manipulation. It is illegal. Supporting HFT infrastructure R&D is expensive. And takes nontri

I doubt that HFT traders really engage into frontrunning or market manipulation. It is illegal. Supporting HFT infrastructure R&D is expensive. And takes nontrivial effort. It is simply too risky to engage in illegal activities. Edit: no point -> too risky

niggler 14y ago
"There is simply no point engaging into illegal activities." There are many major firms such as SAC capital that built a business around insider trading (which is also illegal). Just yesterday: http://www.businessweek.com/news/2012-10-02/ex-sac-capital-manager-tells-fbi-fund-used-insider-data http://www.businessweek.com/news/2012-10-02/ex-sac-capital-m...
- dchichkov 14y ago
  Unlike HFT, insider trading doesn't require investment into infrastructure and R&D.
  - s_baby 14y ago
    Investment of someone elses money. To someone out there this is a rational risk to take.
  - tsotha 14y ago
    And if you do it right it doesn't leave a paper trail. I've always suspected insider trading is the norm, and the careless people get caught.
- deleted 14y ago
  [deleted]