June 10, 2010
High frequency trading creates market volatility and destroys public confidence in the US equities market. It should be stopped as it provides no positive function, the claims of liquidity improvements are spurious, any liquidity improvements are minimal. Simultaneously it terrifies investors.Numerous investors that we speak to believe the system is rigged against them and they are withdrawing their capital from the equity market as a result.
If the US government seeks to increase participation by the public in the US equity market, the outlawing of high frequency trading should be a high priority.