Top positive review
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Excellent Assessment of what HFT has become.
on March 26, 2015
Although I am no expert in the stock market and the Wall Street environment, I have read quite a bit, and appreciate clear and fair assessments of what has happened and is happening. Scott Patterson seems to have provided an excellent, detailed description of how high frequency trading has developed. He mentions its positive aspects, and how it has also morphed into directions that hurt everyone except the narrow group of people who rig the system. Though there are some aspects that are difficult for the layman to follow, he has mapped out the major players and developments in a way for most everyone to understand. In particular, he describes:
- how some HFTs rig systems to get to the front of the line ahead of other traders,
- how prices get systematically manipulated, often crossing over boundaries of legality,
- how this system has produced a very risky situation for the entire securities and financial markets.
His descriptions of the mathematical and software mechanisms of HFT and adjacent transactions are not very sophisticated, but that does not take much away from a fascinating and powerful portrayal of the downward ethical spiral on Wall Street. We need to wake up as a nation (and world, as much of this is mimicked in countries other than the U.S.A.), and change the system towards a fairer and more stable structure.