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This morning the WSJ has an article about HFT http://blogs.wsj.com/marketbeat/2009/09/17/looking-for-love/ that states, “High-frequency traders have kept relatively quiet amid the criticism, at least publicly, even amid heightened scrutiny.” You would think that in the past month, article after article has been flooding the media with anti – high frequency trading propoganda, while high frequency trading firm CEO’s were building homes for the poor with Jimmy Carter. I don’t even know where to start? I guess I’ll just point to a few articles defending HFT in the last month alone, and let them speak for themselves. This one is from Arthur
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There is an article on C16 of today’s WSJ: Small-Caps Are Missing Out On High-Frequency Trading Benefits(http://online.wsj.com/article/SB125306075442314147.html?mod=googlenews_wsj). It is a well written article that laments that the liquidity HFT provides in large caps is absent in small caps, because HFT players don’t play there. While we would agree that the large cap space is in fact a playground for at least one style of HFT (rebate-driven), and that liquidity is added by HFT in the top 100 large cap stocks, and spreads are tightened as a result in the top 100 large cap stocks, we agree with the NYSE study
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