In the recent ruckus kicked up by the Michael Lewis book Flash Boys, high-frequency trading firms found themselves accused of rigging equity markets by front-running investor orders.
HFT techniques, however, are not confined to the trading of equities. In recent years, they have made increasing inroads into the currency markets, where there are allegations that they disrupt an orderly market. But they also provide liquidity to an industry that cannot afford to lose valuable marketmakers in the current environment. To read more….