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Vast amounts of money are being spent on HFT with no benefit to the market, but only to the firms that are currently the fastest at the time. This is a pure greed move and demonstrates so much of what is wrong with much of the modern banking and investment industry.

I would be incredibly easy to come up with a workable compromise, like a throttle or minimum time an order must be maintained, but vested interests will keep that from happening until something truly disastrous happens.



It's a Red Queen Race: everyone's running as fast as they can to stay in the same place - and burning cash by the ton to do so. Red Queen races tend to be good for advancing the state of the art, but they're wasteful. And if you're trying to do something other than advance the state of the art, they're a trap.

http://en.wikipedia.org/wiki/Red_Queen%27s_Hypothesis




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