May 24, 2012 – The Huffington Post- By John Bates
As Aerosmith famously sang: “Rats in the cellar… losin’ money, getting no affection.” Lately, HFTs have been compared to everything from rats in a granary to highway robbers intent on stealing Granny’s pension. Bashing high frequency trading firms has become the latest sport in the financial services industry. So much so that the Futures Industry Association has publicly taken exception to the “emotive language” being assigned to HFTs.
“For example, many people don’t realize that market abuse — as well as being morally reprehensible — comes at a hefty price for the market. So principal trading firms such as our members have a very real economic incentive to fight market abuse and back regulatory reform,” said FIA European Principal Traders Association chairman Remco Lenterman. He noted that the industry’s critics chose to overlook the value that principal trading firms add to the real economy in terms of lower transaction costs and greater liquidity, according to Finextra.
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