High Frequency Trading: Secrets and Ethics

This lecture delves into the world of high frequency trading (HFT), exploring the use of dark pools, latency arbitrage, and the ethical implications of front-running. It discusses key figures in the industry, such as Misha Malyshev and Sergey Aleynikov, and examines the emergence of alternatives like IEX and the Long Term Stock Exchange. The lecture also analyzes the ethical considerations surrounding mathematical formulas in finance, particularly in the context of the mortgage market and the Gaussian Copula formula. It concludes by emphasizing the importance of understanding the ethical dilemmas in finance, advocating for structural reforms, and encouraging individuals to be part of the solution.