Sunday, July 10, 2011

Bank of England blasts HFT meanwhile SGX is launching world's fastest HFT

Bank of England (UK central bank) lashes out on high frequency trading (HFT) with extremely strong word, and calling for HFT to be regulated. Below are the excerpts.

Taken together, this evidence suggests something important. Far from solving the liquidity problem in situations of stress, HFT firms appear to have added to it. And far from mitigating market stress, HFT appears to have amplified it. HFT liquidity, evident in sharply lower peacetime bid-ask spreads, may be illusory. In wartime, it disappears. This disappearing act, and the resulting liquidity void, is widely believed to have amplified the price discontinuities evident during the Flash Crash.13 HFT liquidity proved fickle under stress, as flood turned to drought.

and many many more criticism...etc. Meanwhile SGX will launch the fastest HFT in the world. Chew Sutat, Executive Vice President, SGX, said:

  • "(HFT)To grow the capital markets in Singapore, to support the capital markets in Singapore, growing liquidity is first and foremost......
  • HFT potentially could support growing liquidity......
  • improving the efficiency of the market is a key objective......"

Our corporate leaders and elites seems to be psychopathic liars.

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