Fault Runs Deep in Ultrafast Trading 4.01.2014
Fault Runs Deep in Ultrafast Trading
High speed trading has been a controversial topic for some time now. It has reached the point where firms will pay big premiums to get their computers as close as they can to the stock exchanges. The closer the computers are to the exchange, the faster the can send and receive information. Fractions of fractions of a second swing the markets and make or lose huge sums of money. In Michael Lewis’ new book “Flash Boys” he places most of the responsibility on the traders, saying that they are taking advantage of the markets. That is the popular stance, but in his recent DealBook piece, Andrew Ross Sorkin shifts some of the blame to the markets themselves, whom he says play a larger role in high speed trading, as they are the enablers, and make a serious profit from the practice.
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