Hah! Frank, I'm still working on the answer to your first question, never mind the second.
Upstream, it was posted that we're creating a hair-trigger world, where the so-called Fat-Finger Mistake can propagate at the speed of light:
Message 25775095
In discussing this, I'm trying to stay on the right side of the line, but your readers should know that the issue has become a first (or a followup to a first) in its own right: a war between a finance and economics site called Zero Hedge [ zerohedge.blogspot.com ] and traditional mass media, in this case CNBC.
The back story here is that it was the bloggers including Mish on SI [ Subject 54696 ] - that is, the Internet - that correctly warned readers of impending financial and economic catastrophe, while traditional mass media missed it. They just missed it. Their credibility, as well as their duty to the public, is being questioned. Is the controversy justified? IMO, yes. I can personally testify to decisions made as a result of informed commentary on the 'net: selling my house at the peak of the real estate bubble, going to cash in 2007, and so on.
So that's a whole plot line in itself: the Internet has "scooped" traditional mass media, and those who followed the bloggers saved themselves from financial disaster. What's happening now is a continuation of the contest for legitimacy; the 'net's bloggers have scored major points and many accord regard the best as relibale and credible, the equal to any journo.
This is a "social" 'net phenomenon of some importance. In the opinion of many, the best bloggers are reputable, becoming a force for change and reform. Traditional mass media are still underperforming - and may be "captured".
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Back to the root question...
[1] "... is there an issue surrounding the wisdom of artificially limiting the improvements to trading automation ostensibly for the sake of safeguarding the interests of a select group of traders who are not outfitted to compete"
Is it that limited? Perhaps not. Remember, we also considered larger issues -
A - Systemic risk.
B - Fairness: no individual trader can hope to equal the advantages obtained by those houses possessing HFT hardware and software. By accident or design, a two-tiered system has been created.
[2] "...similar to how advances in genetics are sometimes controlled along moral lines?"
Or how athletic performance is enhanced by steroids? Can't give a "correct" answer, just a personal opinion. That is, Roger Maris still holds the record for home runs: not because he hit more, but because he was clean.
Steroids, Home Runs and the Law of Genius
arthurdevany.com
Jim
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