Concerns about HFT appear overstated, some experts say

03/18/2013 | Reuters · Financial Times (tiered subscription model)

The Australian Securities and Investments Commission has called for tougher market regulation, while tempering concerns about high-frequency trading. "We found public concerns over HFT appear to have been overstated and can be attributed to the increasing use of trading technology by investors generally," according to ASIC. Some studies show that HFT increases volatility and instability, while others say the practice improves market transparency and reduces prices. “HFT firms provide liquidity, and have made the markets cheaper," said Remco Lenterman, chairman of the FIA European Principal Traders Association.

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