Wall St Might Not Be Ready For A War On High-Frequency Trading

Wall St Might Not Be Ready For A War On High-Frequency Trading by Vinay Patel, The Conversation

Stock markets globally have seen increased fragmentation in recent times as investors seek lower transaction costs, faster execution time of trades and fairer prices.

Now a startup backed by US entrepreneur Eric Ries and some Silicon Valley supporters have initiated talks with the Securities and Exchange Commission (SEC) for a new type of trading venue, dubbed the Long-Term Stock Exchange (LTSE). But could the plan create more problems than it solves by taking aim at high-frequency traders?

The talks come as the SEC last week approved another new exchange, the IEX (Investors' Exchange), which aims to create a more level...