Yvonne submits the following guest post:
High Frequency Trading Regulations… Yay or Nay?
Some argue that HFT improves market liquidity, while others say:
“Vilifying high-frequency trading because we don’t like that the market is going down, because there’s a lot of economic uncertainty, doesn’t make a lot of sense,” Lawrence Leibowitz told a conference in New York hosted by Barclays.
I think that HFT has proven that is capable of achieving market growth which is great; however, there should be more regulations because of the associated risks of HFT. Although I usually think that when government gets involved, they generally cause a greater harm than they do good, in this case regulations would be beneficial because of things like the “flash crash” of May 2010 which many blame HFT for although the following article says otherwise.
What do you think?