A Defense of High Frequency Traders

By Cliff Asness et al.  Very cogent, inwards my view.  The bottom line:

In summary, nosotros don't believe HFT profits are excessive or excessively consistent. We censure illegal front end running every bit strongly every bit anyone, merely it has virtually cipher to produce alongside HFT per se. Canceling orders inwards the procedure of providing liquidity is primal to whatsoever form of marketplace making, whether HFT or not. We back upwards the correct of HFTs, or anyone, to campaign to estimate the direction of the market, using enterprise catamenia or whatsoever other world information. We non solely back upwards the right, nosotros celebrate the successful practise of that correct every bit it adds to world welfare past times making markets to a greater extent than efficient too lowering the toll of investing. Lastly, nosotros believe markets are "rigged" inwards favor of, non against, retail investors.

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