High Frequency Trading – Day 3

Based on the stories that dominate Tuesday’s financial news, high frequency trading is still about all that anyone wants to talk about and there has been a dizzying array of opinions on the subject as should be clear in the links post from just a short time ago.

The CNBC brain trust was apparently weighing in on the subject for much of the day yesterday, however, as is often the case, Rick Santelli was the only one who seemed to make much sense as should be clear below beginning at about the two minute mark.

Bob Pisani states the view that has been commonly heard on Wall Street over the last couple of days – individual investors  are really not affected by this and all the publicity it’s been getting could be making them think that the entire market is rigged.

Santelli responds:

But the average investor thinks the SEC is watching out for the marketplace and, I’m sorry, but if a large group of people can take that one cent all day long, day-in, day-out, there’s a problem.