""It's inconceivable that they can regulate [high-frequency trading]," said Ralph Ferrara, a former SEC general counsel. "There are too many [high-frequency trading] systems; they're all idiosyncratic; they're all different. The SEC is starved for cash, starved for talent. A small-sized hedge fund can outperform the SEC," added Ferrara, who left the commission in 1982 and is now a vice chairman of Dewey & LeBoeuf who specializes in securities law."
To understand why high speed trading will never be regulated you have to understand the check kiting con. As long as the fraudulent instruments are in motion they retain their fictitious worth. Once the motion is halted the true value of the instrument catches up with it and the con collapses. In the old days a Bank Teller could crash a check kiting con by simply putting a two day hold on a check in the fraud cycle.
Impossible to regulate a fraud estimated at a quadrillion dollars, it would be an economic cataclysm.
Read the Article at HuffingtonPost
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