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High Frequency Trading and Goldman Sachs

The New York Times has an excellent article on high frequency trading.  Sergey Aleynikov, a man did something very right for the wrong reasons, even makes a cameo.  Read the whole thing.If you want to get a better feel for the issues, the Themis Trading blog shows how high frequency trading looks:The three HFT horsemen are C, BAC and CIT. These three stocks traded 860 million shares today which is 10% of all US Equity volume. Look at the intraday chart of all three of these stocks and you will see a something in common: an early morning move followed by a flatline with a very tight range (around .05). Meanwhile, while these stocks were flatlining the market was heading higher. The S&P 500 gained around 10 points in the afternoon (or 1%) but these 3 stocks did not move...continue to full post

Full post as published by Crime & Federalism on July 24, 2009 (boomark / email).