April 17, 2014

Trading Tech Talk: The Great Flash Boys Debate

57 minutes

Hot Topics in Tech: It’s all HFT, all the time: The recent 60 Minutes interview with Michael Lewis along with his new book Flash Boys has reignited the conversation. My biggest problem with this book is that the material is so dated. It sounds like an OIC panel from 2006. Is HFT hurting the little guy? Is HFT impacting liquidity providers? Has the definition of front running changed? Charles Schwab calls HFT a "growing cancer."

The Inbox: Listener Questions

Question from Charles Vitner - How is the process described in the new book Flash Boys by Michael Lewis not front running? If you do it five minutes or five milliseconds before the order is that not the same thing?

Question from Anthony Neuberger - Can you please explain colocation and the benefits it offers? Why would a firm pay for this privilege?

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