A Last Word
In light of events like the Flash Crash and Knight Capital, it's more than clear that some combination of federal oversight and corporate responsibility is needed to mitigate the risks of HFT. Market confidence is a fragile thing, especially in the current climate, where concerns over Europe, tax policy, and the 'fiscal cliff' drive investors more than company fundamentals do. Errors from high frequency trading can exacerbate sell offs, drive markets into a spiral and take firms into insolvency in the blink of an eye. We must do more to support markets against these concerns and keep America's exchanges a safe place for all comers to invest.