Well my local minster did not offer too much concern about HFT, although her office staff were quite surprised about the practice. She has responded by providing me with a couple of research reports ASIC has written in March 13 and feb 2010. you can read them:
http://www.asx.com.au/documents/media/20100211_review_algorithmic_trading_and_market_access.pdf
and
http://download.asic.gov.au/media/1344182/rep331-published-18-march-2013.pdf
another take on the issue by Eric Budish and his team can be found:
https://faculty.chicagobooth.edu/eric.budish/research/HFT-FrequentBatchAuctions.pdf
There is no economic benefit in my opinion to allowing market makers to employ algorithms
perhaps a great place to start if you do not understand what is going on is the following videos and books.
Buffet on leverage @ 2:34 legalised front running
flash crashes
http://www.economist.com/search/gcs...&gsc.tab=0&gsc.q=algorithmic trade&gsc.page=1
explained
Forex Trading Systems - High Frequency Trading Programs Documentary
How high frequency trading works
What is High Frequency Trading? (HFT) And why its Legal?
Is high frequency trading good for financial markets?
https://www.youtube.com/watch?v=tyW6NCpVykI
perhaps read
Flash boys / Michael Lewis
Given that politicians do not understand what is happening here and associations whos members participate in the industry can lobby the government directly, there is not much that will happen in the way of change.
the best way, in my opinion to facilitate change here is to contact the secretaries of the companies you own and articulate how these programs can decimate the value in a stock while they are working their bums off to improve market cap. they in turn can seek clarity from the ASX or their ministers on why it is welcomed by the exchange.
food for thought.
