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I can't find the NYTimes article link now, so these will have to do: http://www.dailykos.com/story/2009/7/7/750786/-Incredibly-Shrinking-Liquidity-as-Goldman-Fl

I can't find the NYTimes article link now, so these will have to do: http://www.dailykos.com/story/2009/7/7/750786/-Incredibly-Shrinking-Liquidity-as-Goldman-Flushed-Quant-Trading http://www.dailykos.com/story/2009/7/7/750786/-Incredibly-Sh... and http://zerohedge.blogspot.com/2009/04/incredibly-shrinking-market-liquidity.html http://zerohedge.blogspot.com/2009/04/incredibly-shrinking-m... Anti-GS scare-mongering and global conspiracy theories aside, it's fairly clear that only the really large players (Getco, GS, Renaissance) stand to make clear benefits from HFT. But that's alright - they're entitled to, if they figure out how. What is also clear is that the casual retail investor is getting screwed by HFT, and will never realise it. CDS and krap mortgages were strawmen, so I'm not going there. I am curious to know though - do you have your fingers in algo trading in some manner (trader/programmer)?

lrm242 17y ago
I've read both articles before, just re-read them again, and fail to see how you conclude that it is "clear is that the casual retail investor is getting screwed by HFT, and will never realize it." If you can offer a rational explanation based on fact or accepted theory then I'm willing to listen, but a wild assertion based on two random blog posts that make some weak assertions/assumptions won't cut it, IMO. I am not currently involved in high-frequency trading, but I did stay at a holiday inn express last night. :) Seriously though, I know several folks who are, I've followed the industry for a long time, and market micro-structure is a very interesting topic to me. But, why does that really matter, anyway?