"Mr Lewis says the major question is how to structure markets for
stocks and shares as well as bonds and currencies as computers slowly
and inexorably take over from human traders.
Martin Wheatley, the
head of the markets watchdog the Financial Conduct Authority, has said
that high-frequency trading now accounts for 30% of business on the UK
equity market. In America it is higher.
Mr Lewis says that it is
unclear - certainly in the US at least - whether the regulators are
going to do anything about what he says is such a major problem.
reason, he argues, is the "revolving door" between the Wall Street
banks and firms engaged in high-frequency trading and the regulators
themselves. A 'cosy club' has grown up, he says.
But, although that may be the case, Mr Lewis actually argues that the story of Flash Boys is one of hope.
that's because the main witness in his book, Brad Katsuyama, a trader
at the Royal Bank of Canada, has set up an exchange called IEX which
seeks to eliminate 'predatory opportunities created by speed'."
I have mostly left the stock market because of stuff like this.