The bond and stock market for a long time has allowed companies, investment funds and individuals to raise money on the world’s capital markets. This investment mechanism that has allowed the creation of jobs and prosperity.

Now the on-set of high frequency trading, buying and selling shares in micro seconds has been best described by Charlie Munger, vice chairman of Warren Buffett’s Berkshire Hathaway as “bunch of rats admitted to a granary”

[http://en.wikipedia.org/wiki/Charlie_Munger]

These high frequency traders are effectively abusing the market, entering a market for self-gain, and actually delivering very little for the market. Yes perhaps liquidity is added, but it seems incredible to think owning a share in a company for a few seconds adds any intrinsic value or brings any benefit to the company whose shares are being traded.

A great quote from Jurassic Park, “just because you could, you never asked if you should“, and this is the question that has to be asked in the capital markets where these high frequency traders are legal and able to use technology to make money, but are actually damaging the real abilities of the market to raise funds and generate investment.