NEW YORK: The US stock market is rigged in favour of high-speed electronic trading firms, which use their advantages to extract billions from investors, according to Michael Lewis, author of a new book on the topic, Flash Boys: A Wall Street Revolt.
High-frequency trading (HFT) is a practice carried out by many banks and proprietary trading firms using sophisticated computer programmes to send gobs of orders into the market, executing a small portion of them when opportunities arise to capitalise on price imbalances, or to make markets.