(via shorterexcerpts)
Attention CNJ and fans of worlds colliding.
Yeah, I saw. Thanks. You can assume I read every post at zerohedge. My concern is that this won’t actually translate into any substantive change. Kind of like how the “Volker Rule” on prop trading was completely neutered. Something that is frequently overlooked here is how HFT is more likely to screw the profits of the market makers than of normal traders. It’s usually explained as if it somehow changes the price you or I would pay. But remember, we usually have the bid/ask spread working against us. The greater worry should actually be about market stability. Proponents of HFT point out that they provide liquidity. However, if markets start to behave strangely, expect the HFTers to pull out of the market, and take their liquidity with them. Then BOOM, collapse.
