High Frequency Trading behind the very high Market Volatility

Marc Faber : I suppose that 99 percent of high frequency programs are essentially momentum players in other words when times will start to move up in an asset class or in a stock or in a sector or the stock market the computer model says BUY then they all buy and it pushes up prices and then when for one reason or another the market turns and the models say sell they'll all sell basically at the same time that's why we have a very high volatility that's why - in This Week in Money
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High Frequency Trading Explained

A rare look inside the secretive world "high-frequency trading," a controversial technique the SEC is scrutinizing in which computers can make thousands of stock trades in less than a second .The high frequency trading algorithms can also -manipulate- the market (predatory algorithms are one example). The argument for liquidity doesn't make complete sense : you only need millisecond liquidity for the high frequency traders! The exchanges already have circuit breakers (suspend trading if stock loses 10% in 15 minutes), why not another rule that limits the advantage and potential for manipulation by HFT: impose a 20 millisecond delay on all transactions! High frequency trading adds no value to the market, its practitioners produce nothing. Therefore, I propose taxing each of these transactions (that number in the thousands) 5 cents. This could take a big dent out of the deficit



Quants are the math wizards and computer programmers in the engine room of our global financial system who designed the financial products that almost crashed Wall st. The credit crunch has shown how the global financial system has become increasingly dependent on mathematical models trying to quantify human (economic) behavior. Now the quants are at the heart of yet another technological revolution in finance: trading at the speed of light.
NYSE director: "most investors don't care about pennies in stock price"?! that's so ABSURD! it's obvious that someone is losing money to these money-sucking parasites! why is the NYSE director defending them? b/c he's renting those expensive trading machines to them!? such an obvious conflict of interest
I think US Congress need set up new rule for “High Frequency Trading Law” as well as monitors and watchdog on them.I also think that Investors@shareholders, and American people need to know more about how of inside “High Frequency Trading Firm Works..?