HFT (High Frequency Trading) Effects on Investors

9. A Lack of Ethics?

One of the glaring issues with high frequency trading is the use of semi-private data to understand who might trade, and when. This information leads to trading ahead of lower categorized investors, like individuals, pension plans, and mutual funds, putting them at a disadvantage as it relates to pricing and availability. High frequency trading is under scrutiny from the regulatory powers that be for the questionable access to data ahead of the buying or selling public.