Galen Stops looks at how exchanges are acting ahead of any regulatory mandate to address the real issues posed by high frequency trading.
As regulators across the global grapple with a response to
the rise of high-frequency trading, they seem to be driven
primarily by public concern and there is a real danger that
attempts to regulate HFT will ignore the real issues in their
attempts to appease public perception at the expense of
liquid markets. In any event, exchanges are finding solutions
to valid concerns ahead of any regulatory mandate, discovers
When Thomas Edison unveiled his groundbreaking
discovery of electricity, it was not met with universal
praise. The public were reportedly afraid that "nature would
extract retribution for harnessing its power". Electricity
just seemed unnatural.
The phenomenon of the fear of the unnatural has been repeated
in everything from the car to nanotechnology (remember Price
Charles voicing fears that grey goo would take over the
world?). Public perception often resists change, especially
when the innovation seems to traverse the laws of nature or
reach beyond human capacity.
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