Trust and the Markets: A Debate on High-Frequency Trading

If you aren't involved in it, high-frequency trading may seem an obscure practice that feels vaguely like a threat to market integrity. Indeed, the publication of Michael Lewis' "Flash Boys" raised fresh concerns about this approach, which involves computerized strategies, hyperspeed transactions and, often, co-location within exchanges. Accusations of front-running and other forms of unfair advantage have been hurled, and multiple investigations are underway. High-frequency traders have even been blamed for exacerbating the famous Flash Crash of 2010. But according to many investors, HFT actually provides a service by expanding liquidity, narrowing bid-ask spreads and reducing trading costs for all. If these players have an edge, it's in real-time price discovery - the reward for their acumen and equipment. We'll explore both sides of this complex coin: Is HFT a service or a swindle, and what market reforms would serve the interests of all investors?

[Ulterior]

this is the most intelligent conversation I have heard for YEARS

[morleybeswick]

This is one of the few really balanced debates on HFT on Youtube at the current time. Thanks for the upload!