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One of the core complaints about HFT regulation is that the regulators refuse to update their definitions to include HFT activities that follow the letter of th
by dvogel 13y ago
One of the core complaints about HFT regulation is that the regulators refuse to update their definitions to include HFT activities that follow the letter of the regulation but clearly violate the spirit of the regulation. Therefore arguing that HFT detractors are not relying on precise definitions does more to show that you're not really listening to their argument but rather just finding something to nitpick. It looks like an avoidance strategy, not an honest defense.
- yummyfajitas 13y agoFirst off, my quibbles about the definition of front running vs predatory trading are unrelated to my defense. The defense I gave was about price discrimination. It doesn't matter what label you apply to the definition - if you want to argue against me then say why price discrimination is bad. Or say I'm wrong about price discrimination. Second, the "spirit of the regulation" about front running is about allowing people to trust their agents. Other regulations in the same spirit are lawyer-client confidentiality and "financial advisers can't take gifts from companies they give advice on" regulations. There are no "you can't kick people's ass in the stock market" regulations, in letter or spirit. If you play the stock market everyone is trying to take your money. You are trying to take theirs.