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The Trading Mesh

Speed-addicted traders dominate today’s stock market

Thu, 19 Jul 2012 06:04:09 GMT           

Last year we wrote this post about speed addicted traders dominating the stock market – do you think this is still the case? Or is a new breed dominating the stock market? Leave your thoughts below.

According to a recent article, the NYSE remains the cynosure of the global markets, much of the world’s stock trading emanates from drab computer rooms such as one in downtown Los Angeles, or in outposts such as Kansas City, Mo., or Jersey City, N.J.

These are the epicenters of high-frequency trading, a breed of lightning-fast computerized trading that dominates today’s stock market, but which critics say carries risks for investors and for the market itself.

Regulators have yet to pinpoint the cause of Wall Street’s white-knuckle plunge May 6, when the Dow Jones industrial average sank 700 points in less than five minutes. High-frequency trading isn’t believed to have sparked the sell-off but may have contributed to it.

To critics, that’s evidence of the threat they say is posed by high-speed trading.

Read the rest of this article here.

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