High-Frequency Trading Kills America's Stock Markets, James Overdahl!

For this week's video, EverydayPaper.com explains how High Frequency Trading is hurting our stock exchanges, and that ex-SEC chief economist, James Overdahl, who now works at the main High Frequency Trading lobbying group, is wrong to support them.

Here is the statement that he now works for the High Frequency Trading lobbying group: http://www.futuresmag.com/News/2010/6/Pages/Overdahl-becomes-spokesman-for-FI...

Here was EverydayPaper.com's official editorial that appeared the week of August 2nd:

Here is Mr. Overdahl's letter to the Financial Times: http://www.ft.com/cms/s/0/73166b1a-95e8-11df-bbb4-00144feab49a.html

Here is his biography: http://www.nera.com/Experts_6532.htm

Here is the statement that he is on the Federal Reserve: http://www.zoominfo.com/people/Overdahl_James_220952111.aspx).

High Frequency Trading computer programs which have made the stock exchanges in America, especially, the New York Stock Exchange, be compromised and no longer post stock prices that genuinely reflect the value of any company listed -- this has awful consequences because stock exchanges exist to provide liquidity for overall investment in the economy, but these automated, rapid-fast programs are instead creating an environment of flash crashes, and a mutual fund industry, along with other institutional investors, who are fleeing the scene, and running to more stable, and honest, fixed income markets, like bonds. In other words, the manipulation of the stock exchanges by these programs is cutting liquidity in our sorely depressed economy, which desperately needs liquidity. If rapid computer-bloc (algorithmic/Stat Arb/etc) trading is to continue in America, then one of the solutions is not to over-regulate our stock exchanges more, but instead to force all automated trades be identified as either market making, rebate or arbitrage aiming, or buy side. We note in our video, Mr. James Overdahl, the former chief economist at the SEC, who presided over the proliferation of these horrible, liquidity inhibiting programs. He now works for the lobbying body, FIA PTG, that lobbies in-favor of High Frequency Trading, and is a member of the Federal Reserve. He recently wrote to the Financial Times declaring that High Frequency Trading is good.

Category:

News & Politics

Tags:

• stock market
• fraud
• james
• overdahl
• stock fraud
• market manipulation
• nasdaq
• nyse
• new york stock exchange
• corruption
• market
• high
• frequency
• trading
• high frequency trading

[cstubing]

As a trader, if you don't adapt, prepare to be consumed. Complaining about technology entering the trading world only makes you a luddite.

[cstubing]

HFT programs just do what any trader wishes he could do... they obey the rules of their strategy without fail, they trade without emotion, and they can do it in hundreds, even thousands, of stocks at a time.  They're not defrauding anyone.

[rodrigopoppe]

they re killing the smalls traders worldwide

[levraimartin]

And if the Nobel Prizes were wrong, there is a correlation on the stock market.

[neboway]

thank's for your video and it's confirmation that the market has become rigged and as a small investor i can't wait to get out of it and help the market in the long run destroy it self , and maybe the pollies will then take action against these algo's , cheer's friend .

[atmark666]

but still better than insider trading

[dalesalsa]

THAT PICTURE THAT YOU HAVE IN THE BEGINING IS NOT OF A ALGORITHM TRADING COMPUTER.  It is the trading platform of a Private Fund from Canada...

I remember because he sent us pictures of it when we couldn't believe that he had 21 24" monitors.. lol.. It will execute an order by voice comand if I remember correctly... Cool guy... He said he was up 60% for the year and traded mostly stocks, stock options and then 5% forex...

[vention4wh]

Ya it had a big effect on me. Instead of putting my extra money into the market I just threw it into debt, saving me a guaranteed 5.5%. Now all my debt is paid off and my usual spending is now at 31% of my take home pay (or less). The criminals in wall street are the reason I'm debt free today. I bet they would have preferred if I gave my money to them but it's not going to happen. I'm out of it and will probably never go back. I'm saving up to buy income producing property now.

[plify777]

As the HFT Algos have completely obliterated the retail trader the Exchanges can count on more of this Fraud to pump up their own earnings.