Sandy Weill, the former Citigroup chief executive and shatterer of Glass-Steagall says the industry needs a return to the separation of commercial and investment banks, while a recent study on HFT reveals that the practice costs long-term investors $2.5 billion per year.
July 27, 2012
2. True HFT Cost?
In contrast to the academic consensus view that high-frequency trading is benign, our research shows that there's a significant cost to the liquidity that they're providing.
— David Mechner, chief executive of Pragma, a research and trading firm, on his firm's study that estimates the total cost of HFT to long-term investors could be $2.5 billion a year
Source: The Wall Street Journal: Study: High-Speed Trading Hurts Long-Term Investors
