For years I have argued on ASF about HFT.
The issue I have faced is very similar to the issue on gold with this forum:
Namely that you can't convince people who watch Max Keiser or Alex Jones that HFT is not an Illuminati conspiracy.
But also that you can't convince traders and investors that HFT - by and large - is completely detrimental to market microstructure, that HFT is in fact value destructive to free capital markets, and so on.
So just like on the gold issue, I gave up, I don't bother talking to you narrow minded people about this topic.
But I came here today, just to remind you of the issue that ZeroHedge has been faithfully reporting on since 2009 and being dismissed as a conspiracy nutter website since then.
From just last year - 21 May 2013:
From this month, after the release of "Flash Boys" book - 7 April 2014:In March, ASIC described public concerns over HFT as overstated, saying a taskforce charged with investigating the method "did not find systematic manipulation or abuse of markets by high frequency traders".
So what is it about this book "Flash Boys" that has triggered a completely bold-faced backflip by the industry, with similar statements from the SEC and DoJ in the US, new exchanges popping up to combat the evils of HFT and so on?Australian Securities and Investments Commission chair Greg Medcraft said the controversial practice -- which jumped back onto the international agenda last week after explosive claims markets were “rigged” in favour of high-speed traders -- was threatening to drive away investors.
“If people can’t have trust and confidence in the market, then you don’t have a market,” Mr Medcraft told the AFR. “The strength of the market is reflected in how many retail investors you have. If you discourage real buyers, then markets become trading for trading’s sake, rather than serving the real economy.”
A controversial plan to introduce a half second pause on trades is now believed to be back on the agenda after ASIC dropped the proposal last year.
This reminds me so much of the Snowden issue, where geeks who had been paying attention noted that concrete evidence of nationwide wiretapping was taking place in 2006 (google Room 641A, or even earlier google William Binney) but anybody who talked about was dismissed as a conspiracy nut case...until Snowden, and suddenly everyones on the bandwagon.
Wonder how long it'll take for all those on this forum who dismissed concerns I repeatedly raised for five years to catch up to reality on this one....