The head of the US Securities and Exchange Commission told Congress today that the US markets are not rigged. This comes in response to Michael Lewis' latest book 'Flash Boys', detailing the advantages high-frequency trading firms have over other investors. The book has created a firestorm on Wall Street, Washington, and elsewhere as many are now questioning the fairness of the current exchange-based system. SEC Chair Mary Jo White denies any rigging is taking place, stating The US markets are the strongest and most reliable in the world. Of course, what's she supposed to say? By the way, the markets I'm in charge of overseeing favor HFT firms at the expense of the average investor?' Nevertheless, after reading 'Flash Boys' and knowing Mr. Lewis' impeccable track record, it's hard to believe the markets are not manipulated to some extent for the benefit of HFT. (VIEW LINK)
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