NYTimes article on HFT, among other things

Discussion in 'Wall St. News' started by Samsara, Jan 2, 2011.

  1. Samsara

    Samsara

    <a href="http://www.nytimes.com/2011/01/02/business/02speed.html?pagewanted=1&_r=1&hp">Interesting exposition of electronic exchanges, HFT, quote stuffing, and the flash crash in the NYTimes.</a>

    Arthur Deco himself wrote the article, in ten minutes.

    Worth noting:

    "But some analysts fear that some aspects of the flash crash may portend dangers greater than mere mechanical failure. They say some wild swings in prices may suggest that a small group of high-frequency traders could manipulate the market. Since May, there have been regular mini-flash crashes in individual stocks for which, some say, there are still no satisfactory explanations. Some experts say these drops in individual stocks could herald a future cataclysm"

    Not sure how much I buy that manipulation is a lot more possible, but interesting all the same.