The Real Problem with High-Frequency Trading

Uneasy Money

Everybody seems to be talking about Michael Lewis’s new book (Flash Boys), which has been featured on 60 Minutes and reviewed twice by the New York Times. The book is about something called high-frequency trading, which, I will admit, with some, but not too much, embarrassment, I know almost nothing about. Actually, the first time I heard of the existence of high-frequency trading was from a commenter on a post I wrote almost two years ago, about which I will have something more to say in a moment. Michael Lewis’s book is a polemic against high-frequency trading, alleging that it enables high-frequency traders to rig the stock market and exploit ordinary traders. Lewis makes his case by telling the story of a group of hedge-funds that have banded together to create an alternative trading platform IEX, thereby avoiding contact with the high-frequency platforms, which, according to Lewis…

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About Damian Merciar
Damian Merciar is Managing Director of Merciar Business Consulting, http://www.merciar.com, a niche business economics consultancy founded in 1998. He has over twenty years experience in the areas of commercial Business Strategy. He is experienced in the transition environments of nationalized to private sector state utilities and the senior practice of commercial management, advisorial consultancy, and implementation. He has carried out policy advisory work for government ministries and been an adviser to institutional bodies proposing changes to government. He holds an MSc Economics from the University of Surrey’s leading Economics department and an MBA from the University of Kent. Also attending the leading University in the Middle East, studying International Relations and Language, for which he won a competitive international scholarship, and has a BA (Hons) in Economic History and Political Economy from the University of Portsmouth. He is currently based in London.

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