I've always wondered ...DisinformationMake Me Smart DailyFast-Track VaccinesRace and Economy

Loading...

0:00
0% played
What have you always wondered about the economy? Tell us
Support Marketplace Tech
Find Your Local Station
ABOUT SHOW
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

Share Now on:
Share
HTML EMBED:
COPY
HTML EMBED
Download

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

Divided Decade

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

by Molly Wood
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
ListenLISTEN
HTML EMBED:
COPY
EMBED EMBED
Share Now on:
SHARE
Subscribe Using:
SUBSCRIBE SUBSCRIBE

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)

 

 

Listening makes you smarter…
donating makes it all possible.

Our mission is to raise the economic intelligence of the country, exploring the intersection of the economy, tech, and our daily lives. As a nonprofit news organization, we count on your support – now more than ever before.

Secure the future of public service journalism today when you become a Marketplace Investor.

The shoe economy, almost a year into the pandemic
COVID-19
The shoe economy, almost a year into the pandemic
Parents who work full time are more likely to have kids at school in person — study
COVID-19
Parents who work full time are more likely to have kids at school in person — study
Tell us how you shop
How We Shop
Tell us how you shop
Biden: Yellen needs a “Hamilton” musical. Dessa: Here you go.
Biden: Yellen needs a “Hamilton” musical. Dessa: Here you go.