The point people seem to continually miss in this debate is the
distinction between "unfair" and "rigged".
To me the term rigged implies some malevolent conspiracy
between certain members of an ecosystem aimed at taking
advantage of an identified target. In this instance, the
'patsy’ in question is supposed to be the retail
punter and the 'conspirators’ are the electronic
trading firms that exploit the little guys’
inability to act as quickly as they can.
Isn’t this just part of the natural world order of
winners and losers, especially in a free market
Firms that invest their own money in technology to exploit the
fragmented nature of markets deserve to make a profit just as
much as anyone else.
The argument goes up a notch when you consider the
institutional investment community, some of whom complain that
they are left chasing a trail of small droplets of liquidity
laid down by the HFT boys across the lit/dark
My response to this, as demonstrated by those more
technology-savvy buy-side firms, is tool up and get into the
The only other alternative would be to replace the capitalist
underpinnings of financial markets altogether, but in this case
those same investment firms probably wouldn’t be
needed at all…