May 4, 2014
The national and global market system for securities has changed in recent years, neither by intent nor by design. New technology and the recent for-profit orientation of securities exchanges has led to the rise of a new class of securities market participants who dominate trading volume while profiting from an informational advantage. High-frequency traders are known for their short holding periods which are typically measured in microseconds (one millionth of a second) or up to 30 minutes (long-term). This blinding speed dominates order flows, easily accounting for a billion shares of trading volume per day on the New York Stock Exchange (NYSE).
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