Why Michael Lewis got it wrong.

socializing finance

“There is systematic corruption in the market. A rigging, a rigging in the market. And it’s the provision to high frequency traders of information that ordinary investors do not have [which is at the core of this form of corruption]”.

This is, in a nutshell, the central claim of Michael Lewis’ new book, Flash Boys. Built around the almost heroic journey of Royal Bank of Canada’s Brad Katsuyama to understand how the interconnected American stock market works, Lewis’ story is now a centerpiece of the debate on HFT. In the smallish world of finance and technology, it is definitively the talk of the town.

As much as it has been praised (particularly by detractors of high frequency trading), Lewis’ book has also become the subject of intense, acerbic and at times quite emotional critiques. There is, indeed, something both provocative and awkward in Lewis’ account. Perhaps it is…

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