Arthur Levitt's Continuing Quest For The Holy HFT
Arthur Levitt is on a crusade to prove just how innocuous HFT is, first in the WSJ yesterday, now on Bloomberg. This begs the question, if it really is so wonderful, why defend it so vociferously? Which, of Arthur's conflicted interests, has pushed so hard for this PR campaign?
At least here he acknowledges that he is an advisor to Goldman Sachs, without however providing much detail on that relationship.
"HFT is a net positive for the public: squeezing down spreads and costs, getting better execution and adding liquidity."
Once again, Arthur, can you please discuss Implementation Shortfall costs and how liquidity provisioning increasingly affects Slippage?
In the meantime, Senator Ted Kaufman continues his campaign against HFT, and dark liquidity, and for "a level playing field for investors." Perhaps it would be best if the two had a public conversation.
FOR RELEASE: August 17, 2009
CONTACT: Alex Snyder-Mackler (302) 573-6059
Kaufman on SEC Expanding Uptick Comment Period: “Way Beyond Deliberative”
WASHINGTON, DC – Sen. Ted Kaufman (D-DE) released the following statement today after the Securities and Exchange Commission (SEC) announced it is again seeking public comment on reinstating some version of the uptick rule:
“For the markets to have credibility, we need urgency at the SEC to restore a level playing field for investors. The SEC’s process to date has been way beyond deliberative behavior. It’s been four months since the SEC proposed reinstating a version of the uptick rule, and we’re still in the comment period. What’s worse, if the SEC was going to seek additional comment, it should have issued immediately a proposed rule that short sellers must pre-borrow the stock or that DTCC implement a centralized “hard locate” system, two solutions that would end naked short selling with an enforceable rule that are still sitting on the SEC’s shelf.
I’m concerned the SEC is too worried about the effects of its proposed rules on convenience for high speed trading programs than it is on protecting investors through action. As we learn more every day about market developments like flash orders, co-location of servers at the exchanges, high frequency trading and dark liquidity pools, which have happened with SEC approval, I’m concerned the SEC still is not putting investor interests first.”