High-frequency trading involves the use of automated trading platform that uses computerized algorithms to transact a large number of orders at extremely high speeds.
High-frequency trading, or the act of using electronic trading to act immediately on fluctuations in stock prices, has undergone recent criticism.
In essence, Lewis warns that there is the danger (perhaps even the reality] that
high-frequency trading means that the US stock-market is rigged.
The rules also seek to ban unregulated trading and establish tighter rules for
high-frequency trading, which some blame for increasing volatility to a point that threatens the stability of financial markets.
"What Do We Know About
High-Frequency Trading?" by Charles M.
High-frequency trading firms are currently struggling with low volumes and volatility due to tightened competition, strict regulations and low interest rates.
High-frequency trading must be regulated to discourage abusive and manipulative practices on financial markets, warned Finance Watch, on 4 September.
Perez is widely regarded as the preeminent speaker and networker in the specialized area of
high-frequency trading. He is the author of The Speed Traders, An Insider's Look at the New
High-Frequency Trading Phenomenon That is Transforming the Investing World (http://www.thespeedtraders.com), published by McGraw-Hill Inc.