ThiscommentaryisbasedontheworkofCooper,Davis,andVanVliet(2016)andthecommentaryfocusesonwhatproblemhigh-frequencytradingposes.Itlistskeyliteratureonhigh-frequencytradingthatismissingandpointsoutthatthepokeranalogytodefenddeceptioninfinancialmarketsisweakandmisleading.Thearticleelaboratesonthenegativeimpactcreatedbyspoofingandquotestuffing,thetwotypicaldeceptivepracticesusedbyhigh-frequencytraders.Therecentregulationsregardinghigh-frequencytrading,inresponsetothe“FlashCrash”of2010,arepreventive,computerizedandmoreeffective.Theyreflectethicalrequirementstomaintainfairandstablefinancialmarkets.
