High-Frequency and Ultra-High-Frequency Trading
It will be most interesting to see how HFT and UHFT develop in the future. It should be said that at least in the short term, they do add liquidity to the market, which is, of course, a positive factor. But in the long term, they may well encourage questionable activities in the marketplace."
The "questionable activity" hit the equities markets hard in May of 2010 when a flash crash occurred. Sadly, little concrete has been done to prevent this from happening again.
The author's crystal ball is crystal clear on this one: unless changes are made, another flash crash is a certainty.
By Michael Duane Archer