Mar 20 2013 | 5:53 PM

Columbia Business School Professor Charles Jones and CFTC Commissioner Bart Chilton bring two different visions to the growing debate over the role high-frequency trading (HFT) plays in our financial markets.

Writing in a POLITICO opinion page, Jones frames the debate by asking: “Is high-frequency trading a threat to our financial markets or an important innovation that benefits today’s investors?”

Surveying nearly 30 theoretical and empirical papers to date, Jones conducted the first ever “meta-analysis” and “clear-headed assessment of the hard data” on HFT, and finds that “HFT and related technologies are making markets better, not destabilizing them.”

“Almost every time there has been a change in market structure facilitating more HFT activity,” Jones writes, “liquidity and overall market quality have improved.” Since “[o]ne computer algorithm can now do the job of...

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Mar 13 2013 | 4:00 AM
Seal of the U.S. Securities and Exchange Commi...

Seal of the U.S. Securities and Exchange Commission. (Photo credit: Wikipedia)

“Our markets…are continuously evolving, and the technology of today is most certainly not the technology of tomorrow,” SEC nominee Mary Jo White told the Senate Banking Committee in...

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Mar 7 2013 | 3:00 PM

The North American Securities Administrators Association (NASAA) - an organization of state securities regulators – called on Congress to increase scrutiny over dark pools and high-frequency trading to “ensure that our nation’s system of financial services regulation promotes the investor confidence necessary to support strong U.S. capital markets.”

In an interview with Reuters, NASAA President Heath Abshure said “High-frequency trading clearly undermines retail investor confidence in the market.”

NASAA is urging Congress “to establish a committee to determine who uses HFT, their activities and its overall impact on financial markets," according to Reuters.

“Our agenda provides the new Congress with a roadmap to promote investor confidence by striking the most reasonable...

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