Saturday, April 14, 2012

High frequency trading is a tax

I was telling a hedgie friend of mine a couple of years ago—a market neutral small cap guy—about the incredible track records being racked up by HFT shops—not a down day in a quarter, etc., changing the bid and offer every nanosecond in a dance like snake and mongoose, and he said:

“That’s a tax.”

Which it is—so why not a transactions tax?  All the arguments against it are self-serving garbage, IMHO.


See previous post High frequency bloodscukers.

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