From the NY Post: Massive fraud in the high-speed trading markets is escaping
detection because regulators and exchanges are dithering on a powerful supercomputer
to uncover the scams. And as retail
investors begin dipping their toes back into stocks, now at record prices, the
market watchdogs are asleep at the wheel..”
In fact, about 65 percent of equity trading volume alone is
accounted for by high frequency trading computers releasing tiny, rapid-fire
buy and sell orders in nanoseconds, according to Aite Group….
Unlike the individual investor, the machines have immediate
access to the kind of extensive financial data that moves markets. They often employ
controversial techniques like “quote stuffing” and “wash trades” to move prices
in their favor….
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