Sense on Cents

Former SEC chairman Arthur Levitt writes an editorial in today’s Wall Street Journal in defense of high frequency trading. Levitt pens, Don’t Set Speed Limits on Trading.

I welcome Levitt or any other individual highlighting the issues surrounding high frequency trading. Discussion and debate will hopefully bring a healthier marketplace for all. While Levitt provides the standard defense of high frequency trading in terms of providing liquidity, he offers brief remarks against the predatory nature of flash orders. Aside from that, though, Levitt largely skips the debate over the reality of front-running employed by certain aspects of high frequency trading.

I believe, however, the largest hole in Levitt’s editorial actually rests upon the shoulders of the Wall Street Journal itself. How so? Levitt is not only a former chair of the SEC, but he also happens to have a number of paid consulting and advisory roles. With whom? I’m glad you asked. (more…)