The rigging of the market also has broader economic implications. When prices are manipulated, resources may be misallocated, leading to inefficiencies in the economy. This can lead to reduced economic growth, lower productivity, and decreased competitiveness.
Dark Pools: The Rise of the Machine Traders and the Rigging of the U.S. Stock Market The rigging of the market also has broader
The rigging of the US stock market has significant implications for investors and the broader economy. When machine traders use dark pools to manipulate market prices, innocent investors may lose money by buying or selling securities at artificially inflated or deflated prices. This can erode trust in the financial markets, which can have broader economic implications. Dark Pools: The Rise of the Machine Traders
But Patterson exposes a disturbing conflict of interest. Many of these dark pools were owned by the very banks and firms that also operated HFT desks. In some cases, the banks were allowing HFT predators into the dark pools to feast on the unsuspecting institutional clients they were supposed to protect. This can erode trust in the financial markets,