Money Morning Mailbag: Tobin Tax the Only Solution to Problems Posed by High Frequency Trading
October 15, 2010 at 06:00 AM EDT
An episode of the television news program " 60 Minutes " that aired Oct. 10 highlighted investors' fears over the growing trend of high frequency trading (HFT) run by a world of "supercomputers." The "60 Minutes" piece prompted this letter from a reader wondering if the technological shift means it's time to readjust investment strategy. Sunday night on "60 Minutes" they had a story about high-speed computers that are out-trading humans. Is it time to refocus on the world stage and find tangible rather than paper investments to put your money in? A partnership in a retail or manufacturing venue surely is more transparent than the stock market. --Roman Money Morning has been examining the effects of high frequency trading for years. In August 2009 Contributing Editor Martin Hutchinson said high frequency trading systems were front-running the market.
