Monday, 31 October 2011

Insider Trading & High Frequency Trading

Insider Trading may sound very much on the wrong side of the law , High Frequency Trading (HFT) a computer based trading in a window on micro seconds based algorithms, stochastic or metrics of the stock data. While one may argue Insider Trading does in turn benefit someone and becomes the reasons for the loss of some, so does HFT the 2006 black out. Ethical or practical or simply we may ignore in terms of saying HFT is something which was devised to do that evil in a known manner Vs. insider information which reaches the hedge fund masters who ride on the wave and benefit. Kicking off the debate.