Stock Traders Find Speed Pays, in Milliseconds (New York Times):
It is the hot new thing on Wall Street, a way for a handful of traders to master the stock market, peek at investors’ orders and, critics say, even subtly manipulate share prices. It is called high-frequency trading — and it is suddenly one of the most talked-about and mysterious forces in the markets.
Powerful computers, some housed right next to the machines that drive marketplaces like the New York Stock Exchange, enable high-frequency traders to transmit millions of orders at lightning speed and, their detractors contend, reap billions at everyone else’s expense.
These systems are so fast they can outsmart or outrun other investors, humans and computers alike. And after growing in the shadows for years, they are generating lots of talk.
Read also this article: Is Wall Street Picking Our Pockets?
This is ridiculous... why would some investors have an advantage over others simply because they can afford super-fast computers? Only big bank and other investment firm investors have those capabilities.
ReplyDeleteA solution could be to prohibit any sale of stock if it occurs within less than a few seconds or, better, within less than a few minutes, after their purchase.
I agree with you: this is unfair. How to act? complain to the Securities and Exchange Commission
ReplyDelete