Outsiders claim that the high-speed race to execute the fastest trades in opaque markets set off market disasters like the May 6, 2010, flash crash and a $440 million trading loss that crippled Knight Capital Group earlier this year.
Insiders are concerned that high-speed trading could get out of hand, causing markets to collapse at an inconceivable speed.
Yet the data shows that, for the most part, high-frequency trading benefits long-term investors, Simone Foxman tells Quartz. See her ‘case for’ here.
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