There’s more evidence today about the big profitability of computer-driven high-frequency trading.
Who really knows what Ken Griffin has up his sleeve for E*Trade Financial.
Last month, Griffin indicated that his Citadel Investment Group hedge fund gradually would sell-off about 10% of of its E*Trade stock. Then yesterday, Griffin and Citadel said, “never mind.”
The owners of Getco, the Chicago-based high-frequency trading firm, long have been tight lipped–preferring to say little despite the firm’s outsized role in computer-driven, lightening fast trading. So I was looking forward to reading today’s Getco profile in The Wall Street Journal. But after reading the story, I came away disappointed.
It’s often said on Wall Street that the more liquidity there is in a given market, the better things are for investors trading stocks, bonds or commodities. And while there’s a lot of truth to that, there are times when too much liquidity can be just the wrong tonic.