With all its faults was the pit system better than the hft system we have now for the public? A vial of vipers compared to flexions galore?

Gary Phillips writes: 

There are many analogies between the pit and hft i.e., spoofing, front running, etc. However, on the floor, when liquidity was pulled (locals simply put their hands down) traders were still under pressure to make markets in order to maintain quid pro quo relationships with the order fillers they depended on a daily basis. Flash crashes appear to be the direct result of hfts.

anonymous writes: 

Talking strictly flash crashes for a moment: they're ignited by HFT front-running, and then perpetuated by their shut-ins. We know they only provide liquidity when not required.

anonymous replies: 

Sure. HFTs kicked off an arms race that added billions to cost of entering or maintaining a business of trading. And the outsiders will always remain cannon meat.

Then again, in the culture perpetually searching out a greater fool, anything and everything can be inflated ad infinitum, and thus maybe everyone can win?


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