What is the point of this article? HFT provides liquidity, and some would argue, more accurate equity pricing.
I have never heard anyone say high-frequency trading leads to a more even distribution of wealth. Since the birth of stock exchanges "trading" has always been a game where the institutions with greater resources have an advantage.
Correlating HFT computerization to the general democratization of data, and it's effect on political institutions is just silly.
The HFT provides liquidity argument overlooks a crucial point: diminishing returns. You can't increase transaction efficiency indefinitely and expect that the liquidity at vanishingly small intervals is worth much.
Agreed on the diminishing returns front. Defining necessary/useful liquidity would be impossible. Markets would absolutely function just fine (as they have previously) without HFT, but by definition HFT is increasing liquidity.
Not sure what we're arguing about. I never said HFT is "justified" by its infusion of liquidity. It is simply a function of High Frequency trading, whether justified or not.
I have never heard anyone say high-frequency trading leads to a more even distribution of wealth. Since the birth of stock exchanges "trading" has always been a game where the institutions with greater resources have an advantage.
Correlating HFT computerization to the general democratization of data, and it's effect on political institutions is just silly.