How to Regulate High-Frequency Trading

Debaters

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  It’s a Problem of Political Will

  Nicole Gelinas, Manhattan Institute's City Journal

  We don't need complex rules, just real enforcement. The issue is that the two main parties are still in thrall to big finance.

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  Serving All, Not Just the Elite Few

  Sal Arnuk and Joseph Saluzzi, co-authors, "Broken Markets"

  Technology should benefit everyone in the market. Instead, it has replaced supply and demand with a high-speed video game that manipulates liquidity.

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  Don’t Ban the Trades; Regulate Them in Real Time

  Edgar Perez, author, "The Speed Traders"

  With real-time data, regulators could see and stop erroneous activity like the 45-minute flurry of trades by Knight Capital.

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  Tiny Tax Would Make a Big Difference

  Dean Baker, Center for Economic and Policy Research

  A modest financial speculation tax would go a long way to bringing the markets back to earth.

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  Don’t Let Technology Erode Confidence

  Doreen Mogavero, president and floor broker, Mogavero Lee & Co.

  Technologies using high-speed trading have helped create platforms that operate outside of stock exchanges, increasing volatility and hurting investor confidence.

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  Long-Term Focus Provides Most Protection

  Neil Barsky, Former hedge fund manager

  For long-term investors, high-frequency trading is a nonevent. No sane investor should react to the minute-by-minute gyrations of stocks.