22 May 2014

High-Frequency Trading: Is the Market Rigged?

Posted In: Economics

Is the market rigged? This is the question many investors have been asking after the most recent eruption of controversy about high-frequency trading (HFT). But could all the hype overlook a more serious problem associated with HFT? “The real advantages aren’t reliant on speed at all. The real advantages are built on relationships. And this is where the market starts to get ‘shady,’” writes trader Dennis Dick, CFA, in the latest issue of CFA Institute Magazine.

More highlights from the May/June issue include:

Why global expansion is a tricky balancing act for asset managers.
A look at compensation trends for analysts and the link between compensation and job satisfaction for investment professionals.
An interview with AQR founder Clifford Asness about using academic research to develop profitable investment strategies.
Building tools for change to shape the future of finance.

Plus articles on the value of geopolitical analysis for investors, how members of CFA Society Ukraine are coping with extraordinary events in their country, why self-regulatory organizations have a critical role to play in financial markets, and how one high-yield specialist uses “nearly all existing financial instruments” to exploit pricing anomalies.

Please note that the content of this site should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of CFA Institute.

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About the Author(s)

Jennifer Curry

Jennifer Curry formerly served as managing editor of the Enterprising Investor. Previously, she was the social media manager at the New York Society of Security Analysts (NYSSA). Prior to her work at NYSSA, Curry worked as the senior project editor for a nonfiction imprint at Barnes & Noble Publishing and as an assistant editor at the H.W. Wilson Company. She is the editor of several volumes in the Reference Shelf series, and her writing has appeared in Smithsonian, IndustryWeek, Barnes & Noble Review, and other publications. Curry holds a BS in journalism and a BA in anthropology from the University of Kansas, and an MA in anthropology from Hunter College, City University of New York.