BestEx provided Livewire with an exclusive Q&A on HFT: Much of the opposition to HFT in Australia has been emotional and ill-informed. HFT has been described as 'legalised front-running' and unfairly accused of causing market instability. Opponents have called for the practice to be banned, arguing that participants that don't have a sufficiently long-term investment horizon have no business participating in public equity markets (though it is unclear where day-traders, hedge funds and other short-term speculators fit in). In contrast, the academic evidence and the findings of a recent ASIC investigation indicate that HFT is mostly positive and that it supplies liquidity more often than it demands it. Moreover, quarterly data published by ASIC continues to show relatively low order to trade ratios in Australia. For full report, including what funds and other investors can do to protect themselves, click here: (VIEW LINK)



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James Marlay

Handy little interview on that link.