Perhaps because:
1. They can.
and why would they?
1. The HFTs generate more income for the exchanges or less cost to the brokerages (it's always about the money) "Second, depending on who you believe 50 to 70% of all trading volume comes from the HFT’s..."
and why wouldn't the industry do something about it?
1. It's a self-regulating industry.
and self-regulating industries regulate in favor of the industry.
same as why the industry and even SEC denied the existence of 'naked shorting' for such a long time...
The Money...
same as the reason doctors in their 'self-regulated' industry, for eg., don't/did't rat on bad doctors...
operating when drunk or doped up, or being plainly incompetent wasn't often dealt with..
and I think that's much worse than shaving a trade or two.
although, that's changing somewhat...I hope.
I offer simplistic reasons...here's a longer article from Forbes, but, mind you, it's an interview with
one of the 'self-regulated'.
forbes.com
PS, the MMs would frequently jump your bid by a 'teeny' or small amount, ...
and talk about 'providing liquidity'?....the MMs scurried away, up or down, at the hint of good or bad news, or
*an order of size....'liquidity'..harrumph!....more like diarrhea
PPS...
Thinking back, remember about the outrageous commissions we used to be charged before the discount brokerages? 3%, 5%, or 1c to 2c or worse PER SHARE on the smaller cap cos, extra if the order was over a certain size?
So, as the article points out, if we're longer term, it doesn't matter as much, but...it's the principle of the thing. |
