NEW YORK (TheStreet) -- Jim Cramer once again took on the hot topic of high-frequency trading, or HFT, on CNBC's "Cramer's Stop Trading" segment. HFT is back in the limelight after the recent publication of Michael Lewis' book Flash Boys: A Wall Street Revolt.
In commenting on HFT, Cramer, co-manager of the Action Alerts PLUS portfolio, pointed to a statement by Charles Schwab, founder and chairman of Charles Schwab Corp. (SCHW - Get Report) and "a man I have tremendous respect for." According to Schwab, high-frequency trading is "a growing cancer that needs to be addressed."
Continuing with Schwab's statement, Cramer said that 95% of HFT orders end up being cancelled, "suggesting something else besides trading is at the heart of the strategy."
Cramer said HFT firms are the stock exchanges' favorite clients, and retail investors suffer as a result. He called Schwab's statement "the best single piece I have seen on the issue," concluding that it will definitely move the HFT debate along.
- Written by Bret Kenwell in Petoskey, Mich.