Real costs of high-frequency trading

Abstract

When it comes to speed trading, there is overwhelming evidence that it's been largely beneficial to the market. We all love speed. We want 4G speeds for our phones, faster processors for our computers and BMWs for the road. So, why should it be different when it comes to our trading? Does it matter that some traders can trade a few hundred times before others can even blink? Does it matter that exchanges cater to the needs of these high-speed traders and make a quick buck themselves?. These are some of the questions that the Securities and Exchange Board of India (Sebi) has been pondering over, well, for several years now. And as its recent request to the public (for comments on its proposed solutions) shows, it hasn’t made much headway in answering them. Here is an attempt to set the issues in context before evaluating the specific solutions that Sebi is proposing. Read more at: https://www.livemint.com/Opinion/h1yRy0R9gte6laqq0PTITO/Real-costs-of-highfrequency-trading.html