9/28/12

Some Nations Pass Limits on High-Speed Trading


With sixty-five percent of U.S. stock trading being high speed exchanges held for as little as a millionth of a second the financial and banking sector has gained the upper hand in skimming U.S. business for profit. Instead of corporations being purchased or selling stock to enhance production they are simply large chunks of capital that can be finessed for a quick buck. Several foreign nations and even the European Union have introduced legislative proposals to put a firewall in the deconstruction of business logic.


One wonders if even Mitt Romney as President would have the business skill to lead reforms that would set America on a course of reformed capitalism in favor of free enterprise. A New York Times article on the topic Thursday 27 September 2012 reported that Canada has already moved ahead and passed laws that will govern the 'dark pools' and exchanges a little better. 

In dark pools stock can be traded without being reported so long as its price is higher than that publicly listed. Obviously if positions are not held for even Five-hundred thousands of a second, but for a millionth of a second and sold to take advantage of the electronic fluctuations of the stock value the process might not only adversely affect stock trading because of the large quantities involved, put investor capital at risk too, but also provide a rationale for the investments that has no concern about making a more competitive widget at ACME Manufacturing but instead is simply exploitative.


One of the downsides of irrational in relation to the well-being of a target corporation high-speed super-computer guided quantitative trading by heavily capitalized Wall Street and foreign firms is that the world is viewed economically through different glasses than normal human beings with interests in economic stability and wherein a logic for progressive product inventions is implicitly a strong point of capitalism and free enterprise.

The United States will be at a serious disadvantage when it's manufacturing and corporate sectors are open for unrestricted-high speed quantitative trading while those of other nations including China are either entirely closed or in the processing of slowing down. The unemployed U.S. worker is simply a spectator in the volatile high-speed trading world, or would be if it weren't conducted in countless dark pools and thirteen exchanges in a time interval far faster than the blink of an eye.

The other two remedies for the problem of contemporary corporate impracticality regarding the well-being of the nation and for free enterprise competitive advantages is to limit the size of corporations to 5000 employees (quality over quantity and more corporations to compete) and limit the number of corporations anyone may invest in to three (in order to prevent networking of corporations that act monopolistically).

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