Are High Frequency Traders Violators Of Securities Fraud?

High frequency traders (HFTs) are escaping the law and should be the target of increased regulatory enforcement actions, a paper released by Decimus Capital Markets analyst and HFT critic Stanislav Dolgopolov stated. If regulators won’t enforce rules on high frequency traders, specifically related to trading venues allowing HFTs the ability to create “hidden” order types, he encourages private firms to take legal action, outlining how it can be done in a citation-laden 45-page document that is soon to be published in the William & Mary Business Law Review. Sources close to high frequency traders, meanwhile, say their tactics have led to the lowest cost and most liquidity in market history and that no danger to market structure exists.

[dalio]