Markets work when they are liquid – without liquidity -well – we all know what happens. Flash crash or not, it is questionable if high frequency traders (really computers) and the hedge funds they work for are the reason for the massive dip back in May.
However, Washington wants to blame the machines and the people who run them. The Managed Funds Association, a leading hedge fund trade group, has been working to make sure that any new rules regarding high frequency trading make sense. The groups goal seems to be to make sure that the the SEC and CFTC do not simply make rules to make rules but rather make rules that don’t hurt investors and limit liquidity. Read the story here
Recent regulatory moves by the powers that be are just a few of the topics we will be discussing on tomorrows’ HEDGEAnswers Conference Call. Register Here to Get in on the Discussion!
THINGS THAT DRIVE ME CRAZY!
I don’t have anything yet. Stay tuned I am sure this will change soon.