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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Still Rolling who wrote (75148)	6/12/2011 11:09:47 PM
From: Haim R. Branisteanu	Read Replies (1) \| Respond to of 218140

High-Speed Traders Generate Up To 25% Of UK Forex Flows (even the Bank of England is fooled - this greatly increases volatility and herd mentality leading to huge troubles) 12-Jun-2011 LONDON (Dow Jones)--Love them or hate them, high-speed traders now generate up to one-quarter of the foreign-exchange turnover in London--the world's biggest currency-trading hub--the Bank of England reported in its quarterly bulletin Monday. The estimate, based on comments by market contacts, suggests this growing client group now accounts for some $450 billion in flows each day in the U.K., which snags one-third of all global flows. The central bank notes that opinion is divided over whether these high-frequency investors, whose bets often last for under one second, have a beneficial or damaging impact on the $4 trillion-a-day market as a whole. In their favor, their price-making, as well as price-taking habits, have helped to generate new competition, and pump new liquidity into the market, boosting efficiency and bringing down trading costs for everyone, the report said. But some fear that they may flee the market during times of stress, leaving bare patches in trading conditions, the BOE notes. Others are concerned they may be amplifying volatility at busy times. Still, "there is some evidence to suggest that high-frequency traders might actually stabilize conditions to some extent, perhaps because their behaviour has tended to normalize more quickly than other participants after periods of heightened volatility," the Bank of England said. - By Katie Martin, Dow Jones Newswires;