It appears that even regulators are getting tired of high frequency trading.
As I written earlier, many people - including myself - regard computer-driven trading (most of which is no more than front-running) would like to see high frequency stock trading curbed, if not eliminated.
So I was pleased to pick up the New York Times yesterday morning and see on the front page ("above the fold", no less) a story entitled "Clamping Down on Rapid Trades in Stock Market". Here's an excerpt:
Regulators in the United States and overseas are cracking down on computerized high-speed trading that crowds today’s stock exchanges, worried that as it spreads around the globe it is making market swings worse.
The cost of these high-frequency traders, critics say, is the confidence of ordinary investors in the markets, and ultimately their belief in the fairness of the financial system....
I think we'll expect the usual push-back from Wall Street, but I think that anything that help restore confidence in equity investors will go a long way to helping the individual investor.
No comments:
Post a Comment