At this point we have all become accustomed to the HFT defense playbook. The defenses:
– HFT adds liquidity and reduces spreads
– HFT aids in price discovery
– HFT lowers transaction costs for all
– HFT is market-making evolved
– There are no studies that show HFT to be harmful
are repeated ad nauseum by HFT practitioners, well-known industry veterans who sit on these firms’ boards of directors, consulting firms whose bread is buttered by these firms, as well as exchange and ATS heads. Magazine articles and SEC comment letters also relate how, in the 2008 stock market meltdown, these firms stabilized the market. We diligently
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