The potential cost is huge; the short-term benefits are minuscule. Let’s give HFT the funeral it deserves.
The Bond Market Discovers A New Leading Man
Mr. El-Erian counters that Pimco’s culture rewards people who challenge conventional wisdom.
4549 Words In 20 Milliseconds
Deep dive into the world of algo-trading :
In a mere 20 milliseconds, the world’s ‘traders’ had managed to read Bernanke’s 4549-word script, interpret it (as bearish in this case – which apparently is wrong now?) and start to sell down the major equity indices.
The Formula That Killed Wall Street
His method was adopted by everybody from bond investors and Wall Street banks to ratings agencies and regulators. And it became so deeply entrenched—and was making people so much money—that warnings about its limitations were largely ignored.
Abnormal Capitalist 