High-Frequency Trading Has ‘Rigged The Stock Market’

By: Tuesday April 1, 2014 9:09 am

High-frequency trading (HFT)  has been allowed to continue despite its transgressive nature due primarily to people being unable to understand it, or so says Michael Lewis. HFT involves using supercomputers to make financial trades at milliseconds to front run other traders and benefit from the advantage of speed. The conclusion of the analysis is that [...]

Congressman Proposes Wall Street Sales Tax

By: Friday July 12, 2013 10:09 am

Congressman Rush Holt, one of many candidates vying for the New Jersey Democratic Party’s nomination for U.S. Senate, has put out a campaign ad endorsing the financial speculation tax. “These days, most stock trades aren’t made by human beings,” Holt says. “They’re made by supercomputers that flip stocks at a fraction of a second, helping [...]

Study: High Frequency Trading Robs From Smaller Investors

By: Tuesday December 4, 2012 10:45 am

A new study confirms that high frequency trading, which already has declined in terms of its yield if not its use, endangers investors and basically turns stock markets into automated casinos where the average Joe can do little but get hurt. The chief economist at the Commodity Futures Trading Commission, Andrei Kirilenko, reports in a [...]

High Frequency Trading Can Be Curtailed Simply With a Transaction Tax

By: Thursday October 18, 2012 7:45 am

The stock market has become a war between algorithm-based robots, a war for speed where the winners trade 10 microseconds faster than the losers. But all sides of this war have armed themselves so well, have reduced the timing of trades so much, that high frequency trading no longer makes much money. Now it appears [...]

SEC Using High Frequency Trading Firm to Monitor High Frequency Trading

By: Monday October 8, 2012 2:28 pm

One of the areas that Sen. Ted Kaufman and his chief of staff Jeff Connaughton tried to focus on during his accidental two-year term in the Senate was high-frequency trading. The 2010 “flash crash” showed the potential dangers of this fast-growing industry. Consider that our financial system places a large emphasis on where super-computers are [...]

Machines Have Taken Over the Stock Market

By: Thursday August 2, 2012 8:55 am

In another example of why normal Americans just shouldn’t play the casino that has become the stock market, a runaway trade bot threw the NYSE into turmoil yesterday: An automated stock trading program suddenly flooded the market with millions of trades Wednesday morning, spreading turmoil across Wall Street and drawing renewed attention to the fragility [...]

Schumer’s Ideas: One Awful, One Excellent

By: Monday May 9, 2011 10:42 am

It’s Chuck Schumer Day here at FDL News Desk. Schumer, in addition to smack-talking John Boehner on the debt limit, came out with two policy ideas over the weekend, one abominable and one that has quite a bit of merit. See if you can guess which one got more attention. The abominable one, of course, [...]

Flash Crash Panel Recommends Financial Transaction Tax

By: Monday February 21, 2011 6:31 am

It would have been easy to miss this the past few days, given everything going on. But are you aware that a panel of experts basically said regulators should consider a financial transaction tax, as the only way to stop another “flash crash” caused in part by high-frequency trading? Regulators should stem the growing tide [...]

SEC Looking at New High-Frequency Trading Rules

By: Wednesday September 8, 2010 6:50 am

On May 6, the stock market crashed and then rebounded in the space of five minutes, a technical glitch that pulled back the curtain on the level of automation and trading-by-computer in the financial system. It wasn’t just that the NYSE had been rigged to the benefit of the influential and the powerful, it was [...]

900-Point Dow Drop as Much about Faulty Oversight as Human Error

By: Friday May 7, 2010 6:26 am

You probably know the excuse by now. Someone at Citigroup entered a “b” instead of an “m” and initiated a 16 billion dollar sell-off of Proctor and Gamble, leading to a massive bungee jump in the Dow, dipping 1,000 points before bouncing right back and finishing the day 300 points off. The stock exchanges seemd [...]

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