There is a group of us, on Twitter, who post images and charts of high frequency trading gone mad, in real-time. I’ve put up images and data received through Nanex depicting the dramatic consequences that asset prices and financial markets as whole face, because of excess capital being deployed that the FED pumped into the system and because of super computer trading. I show these clips to showcase that evidence that HFT and the consequences we face because of it has been around for years.
In the first clip, Eamon Javers, who interviewed Eric Hunsader in Chi-town last week, describes 1 second of trading at 8:29 AM EST in Treasury 5 Year Bonds on May 4, 2012.
In clip 2, Javers describes light-speed arbitrage.