Rigged markets because of HFT the problems and potential solutions
From Jeff Solomon on Bloomberg TV
Sorry about the cummy typing as typed in a rush:
HFT and speed trumps price discovery. Inequity who gets the market feed.
More efficient markets today and faster. Small cap market require wider big spread and slower market.
Feeds are faster so run get stock before regular execution for normal.
Need wider increment for market depth for fundamental with real price discovery (buy and sell opp). Used to have it.
SEC needs pilot for wider increment in 5 cent increments. Need discrement for better price discovery.. Queue. Too many increments. Killing small cap companies but volume moved to larger cap for liquidity.
Small cap is 2% of volume for companies less than $750M.
Less market balance today so small caps getting killed.
IEX could be the crusaders from Mike Lewis. They are trusted. He said they are interesting service.
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