Joseph Stiglitz Suggests HFT Tax

In a recent talk at the Federal Reserve Bank of Atlanta, Nobel Prize-winning economist Joseph Stiglitz suggested taxing high frequency trading as a way to effectively stop the practice without an outright ban. Joseph Stiglitz has rejected the notion that HFT benefits the market, or society, and argued that it actually destroys value, reports Pedro Nicolaci da Costa at The Wall Street Journal.

HFT has been in the news recently as Michael Lewis’s Flash Boys has accused the practice of rigging the market to take advantage of normal investors while the Federal Bureau of Investigation (FBI) has launched an investigation...