Too much high-frequency trading can rig the market, IEX founder says
Sep 18, 2018

Too much high-frequency trading can rig the market, IEX founder says

HTML EMBED:
COPY

Marketplace Tech is spending all week looking at the risks technology can introduce to investing. Today, part one of a look at high-frequency trading. Critics of too much high-frequency trading say it makes markets vulnerable to manipulation, and the algorithms that fuel it can cause abrupt dips and rises in stock prices. Brad Katsuyama is a former big bank trader who's the subject of the 2014 Michael Lewis book "Flash Boys." He started studying high-frequency trading before the 2008 financial crash and eventually decided to start his own stock exchange to remove the influence of trading technologies that he says rig the market. Molly Wood talks with Katsuyama and Jonathan Macey, professor of corporate law at Yale, about the implications of high-frequency trading. (09/18/18)

 

 

Segments From this episode

Too much high-frequency trading can rig the market, IEX founder says

Sep 18, 2018
Brad Katsuyama says some traders use tech to "know the horse race is over, and they're betting against people who still think the race is happening."
An employee views trading screens at the offices of Panmure Gordon and Co. in 2014 in London.
Carl Court/Getty Images

Marketplace Tech is spending all week looking at the risks technology can introduce to investing. Today, part one of a look at high-frequency trading. Critics of too much high-frequency trading say it makes markets vulnerable to manipulation, and the algorithms that fuel it can cause abrupt dips and rises in stock prices. Brad Katsuyama is a former big bank trader who’s the subject of the 2014 Michael Lewis book “Flash Boys.” He started studying high-frequency trading before the 2008 financial crash and eventually decided to start his own stock exchange to remove the influence of trading technologies that he says rig the market. Molly Wood talks with Katsuyama and Jonathan Macey, professor of corporate law at Yale, about the implications of high-frequency trading. (09/18/18)

 

 

The future of this podcast starts with you.

Every day, Molly Wood and the “Tech” team demystify the digital economy with stories that explore more than just “Big Tech.” We’re committed to covering topics that matter to you and the world around us, diving deep into how technology intersects with climate change, inequity, and disinformation.

As part of a nonprofit newsroom, we’re counting on listeners like you to keep this public service paywall-free and available to all.

Support “Marketplace Tech” in any amount today and become a partner in our mission.