Thu, 25 Aug 2011 04:06:00 GMT - High Frequency Trading Review
(CNBC - John Melloy) High speed computer trading by funds with holding periods of sometimes just milliseconds are to blame for rising volatility, the disappearance of diversification and the death of individual stock picking, and the problem is going to get worse, say an number of traders and market strategists.
“From our perch, trading customer business day in and day out, we can certainly say that high frequency trading has amplified market moves, both up and down,” said Sal Arnuk, co-head of equity trading at Themis Trading who advised the SEC after last year’s so-called flash crash. “High frequency trading does not analyze fundamental metrics of corporations. It analyzes data patterns.”
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