Good News & Bad News, page-43971

My take from this interesting article - amid the platitudes and business speak - is that the realisation that HFTrading is driving short selling unfairly and that some (I wish all) jurisdictions are at last looking at regulation.

I say - C'mon Aussie, c'mon, TAKE NOTE for example (quoted in no particular order) " ...... increase scrutiny on high-frequency trades ... regulations are balanced to protect investors without stifling market efficiency and innovation... Some have welcomed the restrictions as they can reduce short-term speculative trades...the rules were needed to adjust for what were arguably loopholes in the system....it would require high-frequency traders to register before they can place orders... to restore calm amid concern over the impact of illegal short selling, program trading and corporate scandals. ...It’s a view echoed by Wei Li, multi-asset quant solutions portfolio manager for BNP Paribas, who said such measures could contribute to a more stable and transparent market environment and ultimately benefit all participants. (I like that last bit!)

But there is also A SENSE OF CONCERN from the BEOT ... "The current trend of regulators tightening the regulation of high frequency trading is ... worrying,” said Gary Dugan, chief executive of the Global CIO Office. The activity of the HFT ... brings liquidity to the markets ... better liquidity should lead to the improvement in the efficient pricing of assets. (I say take away HFT and let normal every day trader supply and demand demonstrate true market liquidity.) As it became impossible to employ various strategies in South Korea, they are saying goodbye to the South Korean market and doing arbitrage trades instead in Japan and Hong Kong, (I say, Duh, yes obviously, shying away from regulation.)

It is gratifying to read this piece, but concerning that regulation is unlikely to be across all markets world-wide and therefore can only penalise those that regulate. And as for the unknown spectre of AI, gawd 'elp us!!

All IMO and GLTAH