Wednesday, 1 October 2014
Last updated 4 hours ago
Jul 9 2014 | 6:24am ET
Citadel Investment Group founder Kenneth Griffin yesterday urged Congress not to ban high-frequency trading, but to focus on regulations that would improve market stability.
Speaking at a Senate Banking Committee hearing, Griffin, whose firm does some high-frequency trading, albeit less than in previous years, said that Congress should “absolutely not” ban the practice. He called the U.S. equity markets “the fairest, most transparent, resilient and competitive” in the world, and said that HFT helps reduce market inefficiencies.
“Somebody has to keep the New York markets in line with the markets in Chicago,” he said. With HFT, “it all happens at an extremely low cost in the context of our capital markets.”
Griffin told the senators that he supports “thoughtful regulation,” noting in particular the need for more attention to dark pools. The hedge fund chief said such “alternative trading systems” need to be monitored to ensure that all investors are treated equally.
Griffin also called for increased disclosure from broker-dealers, which he said “need to have solid and robust fail-safes.”
“We need to have broker-dealers and exchanges work hand in hand to prevent aberrant orders from having an undue and unfortunate—in fact, devastating—impact on investor confidence.”
During the hearing, Sen. Mark Kirk (R-Ill.), who opposes additional HFT regulation, asked Griffin if author Michael Lewis had spoken to him about the subject. Lewis’ book, Flash Boys, has fueled much of the recent debate on HFT; Lewis has said it has “rigged” the U.S. markets.
“I’ve never spoken to Michael Lewis,” Griffin said. “He never called you?” Kirk pressed. “He did not,” Griffin responded.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...