Chris Martenson Interviews Joe Saluzzi on High-Frequency Trading: The Equity Market Is Now Controlled By The Machines
by Tyler Durden
Joe Saluzzi, co-founder of Themis Trading LLC and outspoken exchange expert, is concerned with how high-frequency trading has brought the capital markets into uncharted – and dangerous – territory.
“Things have changed,” he cautions. With 50-70% of all trades being conducted by algorithms at micro-second time intervals, real human traders are increasingly challenged to understand how our markets actually work. “No longer do the technical patterns – that have lasted for years and years, and are written about all over – work anymore.”
In the following interview, Joe and Chris plunge into “dark pools” and other poorly-understood elements of our now-machine-dominated financial exchanges. The current system is fraught with risks of further “flash crash”-like disruptions, and at a fundmental level, feels a lot like sanctioned theft by the deep-pocketed institutions who can outspend on technology and speed. This is an important interview for anyone involved in trading (professionally or personally), as well as investors who want to know how today’s markets truly operate.