Electrical blackouts are caused because of modeling complexity tradeoff from model simplicity in my opinion. One of the best transmission systems engineers caused a stir 40 years ago by admitting that a no fail electrical system could not be modeled or built. That caused quite a stir for politicians who quickly ignored him delivering a message that would not be heard. Any model (as explained above) by definition must limit the accuracy somewhat. Due to other very small effects that go on constantly (mankind's limited knowledge, chaos theory, quantum mechanics, etc.) there are parts of reality simplified out in the model. When some tiny effect thrown out swamps the model, we have black swans or blackouts.
The biggest HFT operators are central banks, broker/clearing house matching algos. If we stop government intervention in markets and clearing houses being able to use your money to trade while writing you fancy IOUs.. 90%+ of HFT will be gone. If they pass bans on HFT, and this shit still goes on (because govt and clearing houses wouldn't be subject to the bans, only independent marketmakers(ie. daytraders)) then what? What will you fuckers complain about then?
You like to move the argument to secondary effects yourself I think. Please stick to the question asked in the title. Tell us all the precise value that HFT adds to a market system that has worked for longer than you have been alive.
Continuous liquidity at each time frame you require. There is always somebody to buy and sell with no wait, low commission and tight spread. HFT player operates in free markets where nobody should ask why and how often you trade. You can trade at your own speed and it is nobody business what others are doing as long as it is legal (by the way I am retail and do not mind HFT). My concern is to have free and unrestricted access to market place with fewer regulations but easy to enforce. HFT scare is being used to introduce further restrictions for independent traders and give big dealer banks working for the Fed total control over asset prices.
Everything. That is why people who do not know should ask for opinion instead of offering uneducated guess.
OK. So before HFT, did this not happen? What do you think market makers do in a market and what is the HFT relationship to market makers?
lol @ improving any system. hilarious, you should be a stand-up comic. Tell me why it can't be the other way around? why isn't a ban on HFT looked at as the criminals and henchmen trying to protect their business? who didn't realize that this fast adaptation of technology would hinder their bottom line? Oh that's right, you're fucking clueless! You do realize the normal trader can't HFT stocks? The commissions are just not worth it. Sub-penny and all that shit is done by BD's! :eek: