High Speed Trading At Exchanges

High Speed Trading At Exchanges

Finally Congress is looking at high speed trading and what it is doing to the marketplace. Like most things, this is a messy issue. It’s not necessarily electronic trading that is causing the problems. Mostly the roots of the problems are in the way the markets are regulated by the SEC, and in the way the exchanges administer them.

Congressman and Senators don’t have intimate understanding of these markets. They also have relationships with banks, trading firms, exchanges and individuals so don’t look for any altruistic market based rules or regulations to come out of their committee hearings. But it’s...