High speed trading is dominated by computerized technology. The U.S. Securities are researching and searching for past records of computerized trades of brokers, banks, and also hedge funds. What is found is the fact that high frequency trading thrive on selling and trading at a speed of less than one second. What else is found is the fact that trading with this speed is associated to volatility and rigged perception of the game. An example, that is proposed in the article states that in May, Dow Jones Industrial Average lost almost 1,000 points but was able to bounce up in less than a second. High frequency traders may not be responsible for what has happened, but they were found to be associated to kicking the market into “overdrive”.
Other issues that concern high frequency trading is the fact that investors are losing confident with this trade. The Security and Exchange Commission and the Financial Industry Regulating Authorities are adding a new type of monitoring system that can manage and “audit trade”. It is also stated in the article, that high frequency trading is also associated to “unfair” trade because of the speed that they are able to sell and buy stocks.
What does wall street say about high frequency trade? We want a “free market”.