High-frequency trading and technology-enabled competitive advantage
If you ask me, some of the best moments of Jon Stewart’s The Daily Show are his interviews with journalists. In his unofficial role as a media critic for the millennial set, Stewart usually draws out the best in reporters looking to tell the stories behind the stories — and his interview last week with financial journalist Michael Lewis was so incisive that the show dedicated two full segments to it.
Lewis, who was promoting his latest book, Flash Boys: A Wall Street Revolt, discussed the rise of high frequency trading (HFT) on Wall Street — and the longer he spoke, the more clear it became that some traders — ahem, I mean their computers — have a competitive advantage over the rest of the market. Pay heed, DiCaprio: These new wolves of Wall Street are using technology in ways we couldn’t have fathomed 20 years ago.
Read all about HFT in this week’s Searchlight column.
Stock-trading computers have come a long way, Leo.