A big portion of this trend can be blamed on the great recession, and what is seen as a suddenly realized peril of even seemingly solid and famous institutions going down as they succumbed to high-risk operations in the market.
If you know that by getting to the front of the line you are able to see or anticipate some material number of the trades that are about to happen, you are GUARANTEED to make a profit. What is the definition of a rigged market? When you are guaranteed to make a profit.
The industry counters by denying these facts and boldly claiming that they provide liquidity and lower costs, but it has been demonstrated that HFT is more often a liquidity taker than a liquidity provider and, if anything, raises the costs of trading.
While supporters of the current system like to brush off criticism of our new electronic stock markets as the dinosaurs' last gasp, they fail to recognize that the public itself has started to share these concerns.
The normal exchanges tend to be more volatile and more prone to market crashes than their inverted and pro-rata brethren. As such, investors concerned about market manipulation may be best advised to execute their orders at inverted or pro-rata exchanges.
Capital used to mean silver and gold; now it's credit. Digital currency has a potential for manipulation and fraud that paper bills and coins never could. And no counterfeiter could make a fraction as much as a hedge fund operator or Wall Street CEO. Not even close.
How would you like to invest $10,000 and watch it grow over twenty years into $1,461,920? Well that's what happened at the giant hedge fund, SAC Capital Advisors, which made a 30 percent return for 20 years in a row.
Billions of dollars are being invested to make trading without humans faster, cheaper, smarter. The problem is that no matter how smart you make machines, they will never be smart enough in our lifetime to detect all levels of deceit and fraud. Particularly online.