This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Faster, Cheaper, Dumber: Street Whispers

That is why the new Wall Street war for clients isn't about serving retail giants E-Trade (ETCF), Charles Schwab (SCHW) and TD Ameritrade (AMTD - Get Report) with lower prices, but instead about serving up ordinary trades to a shark tank of fast-money traders who've plugged directly into exchanges.

As ordinary equity investors flee stocks because of a loss of confidence in markets after flash crashes have led the likes of Apple (AAPL) above $100,000.00 and Accenture (ACN), Hewlett Packard (HPQ) and Boston Beer Company (SAM) to pennies, stock market trading is increasingly the domain of quick buck artists.

As a result, exchanges and trading outfits are now focused on gaining the remaining retail or institutional orders to lure in exponentially larger sized HFT trades.

While exchanges, regulators and high frequency trading outfits frame new developments in the structure of stock trading on improvements in pricing, speed and execution, there seems to be little recognition that markets remain on a crash course towards instability and speculation, at the detriment of long-term retail and institutional investors who used to be the fabric of stock trading.

In order to take back market position from ominous dark pools and high frequency exchanges where trading largely goes unregulated, NYSE Euronext's seemingly well-intentioned efforts to bring those trading practices to retail investors - backed on a "trial basis" by the Securities and Exchange Commission -- are likely to be overwhelmed by benefits to speculators.

For more on high frequency trading see why high frequency traders are ready to feast on corn and why they love a good flash crash.

-- Written by Antoine Gara in New York

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
NYX $0.00 0.00%
AMTD $37.22 0.00%
ETFC $28.24 0.00%
KCG $12.33 0.00%
NDAQ $50.70 0.00%


DOW 17,976.31 +263.65 1.49%
S&P 500 2,086.24 +25.22 1.22%
NASDAQ 4,947.4410 +56.2220 1.15%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs