Posted by Larry Doyle on April 1st, 2014 10:18 AM |
News late yesterday that the FBI is investigating high frequency trading operations for potential securities violations including insider trading sent a shock wave through the industry.
As well it should.
All too much evidence from respected industry insiders over the last five years has painted a picture of massive front running via HFT disguised as providing liquidity. Front running and collusion are supposed to be illegal practices.
To think that these conspiratorial behaviors are the work of a few rogue traders or computer programmers is ludicrous. Yet I remain very suspect that we will be fed a diet of just such nonsense as an indication that the Feds are going to clean up this practice.
Why am I so suspect? A number of reasons, including: Read the rest »