Prof. Joel Hasbrouck on the risks and benefits of high-frequency trading
Excerpt from The Atlantic Magazine's Quartz -- "The trend towards HFT is part of a broader change on Wall Street, says Joel Hasbrouck, a professor of finance at NYU’s Stern School of Business. It is a move from markets run by a network of New York traders to a global, electronic network with near-perfect information. In the old days, market specialists would often hail from the same family, and friendships and dinners would be rewarded with preference on the floor. Now quotes are much more accessible. 'It’s not that high-frequency trading is very new, it’s that they have speeded up strategies that have been there for a very long time,' Hasbrouck explains. 'The world of high frequency trading is a lot more open.'"