How High Frequency Trading and Predatory Practices on Wall Street Are Destroying Investor Confidence and your PortfolioBook - 2012
Examines the predatory nature of the stock market, how a small group of investors made it that way, and what can be done to improve the situation and empower the ordinary investor.
The markets have evolved at breakneck speed during the past decade, and change has accelerated dramatically since 2007's disastrous regulatory "reforms." An unrelenting focus on technology, hyper-short-term trading, speed, and volume has eclipsed sanity: markets have been hijacked by high-powered interests at the expense of investors and the entire capital-raising process. A small consortium of players is making billions by skimming and scalping unaware investors -- and, in so doing, they've transformed our markets from the world's envy into a barren wasteland of terror.
Since these events began, Themis Trading's Joe Saluzzi and Sal Arnuk have offered an unwavering voice of reasoned dissent. Their small brokerage has stood up against the hijackers in every venue: their daily writings are now followed by investors, regulators, the media, and "Main Street" investors worldwide. Saluzzi and Arnuk don't take prisoners! Now, in Broken Markets, they explain how all this happened, who did it, what it means, and what's coming next. You'll understand the true implications of events ranging from the crash of 1987 to the "Flash Crash" -- and discover what it all means to you and your future. Warning: you will get angry (if you aren't already). But you'll know exactly why you're angry, who you're angry at, and what needs to be done!
Electronic trading experts Amuk and Saluzzi, founders of an institutional brokerage firm who appear frequently in national print and TV news sources, claim that the stock market has been damaged by high-frequency traders (HFTs) and their hyper-short term trading, to the detriment of investors. Writing in plain language for investors, they explain the regulatory factors surrounding the transformation of US stock exchanges into for-profit companies and discuss the negative consequences. There is special emphasis on the impact of HFT on retail and institutional investors, and on the role of HFT in the Flash Crash of May 2010. The authors inject a sense of humor into the situation with chapter titles like 'Regulatory Hangover' and 'Dude, Where's My Order?' They conclude with a call to action and ideas on how investors can make their voices heard. An appendix presents white papers created by the authors' firm between 2008 and 2011, explaining market structure issues. FT Press is an imprint of Pearson Education. Annotation ©2012 Book News, Inc., Portland, OR (booknews.com)