High-Speed Trading: Be Careful What You Wish For

AP/Richard Drew

May 25, 2012 – By Ben Levisohn –           The Wall Street Journal

My colleague Kirsten Grind had a story in Thursday’s paper about how a small group of “market wonks” is planning a new trading venue designed solely for mutual-fund managers.

The article, “Mutual Funds Promised Haven from Speedsters,” says the trading platform will seek:

…to protect fund managers by excluding so-called high-frequency trading firms, which use powerful computers to jump in and out of markets at lightning speeds…. The idea reflects concerns big investors have had for years about high-frequency traders.

At moments like these it pays to remember just who’s responsible, at least in part, for the shift away from markets that had been made by human beings to those that are made by superfast computers: the mutual-fund managers themselves.

To read the full article please click here.

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