Ex-SEC GC: Financial Markets Aren't Rigged, They're Broken

more+
less-
Oct. 19 (Bloomberg Law) -- Ralph Ferrara, partner at Proskauer Rose LLP, talks with Bloomberg Law's Lee Pacchia about the problems presented by high frequency trading and potential solutions. Ferrara says that certain policy changes made by Congress in the mid-1970's had the effect of decentralizing financial markets and diminishing the presence of human controls over trading activity. In his opinion, the resultant market fragmentation combined with high frequency trading has led to a broken, two-tiered system that could force retail See more +
Oct. 19 (Bloomberg Law) -- Ralph Ferrara, partner at Proskauer Rose LLP, talks with Bloomberg Law's Lee Pacchia about the problems presented by high frequency trading and potential solutions. Ferrara says that certain policy changes made by Congress in the mid-1970's had the effect of decentralizing financial markets and diminishing the presence of human controls over trading activity. In his opinion, the resultant market fragmentation combined with high frequency trading has led to a broken, two-tiered system that could force retail investors out of the market and fundamentally change the notion of capitalism in the United States. Ferrara served as General Counsel to the Securities & Exchange Commission from 1978 to 1981. See less -

Embed Video

Copy

Published In: Consumer Protection Updates, Elections & Politics Updates, Finance & Banking Updates, Science, Computers & Technology Updates, Securities Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Bloomberg Law | Attorney Advertising