Read : Flash Boys by Michael Lewis

Flash Boys Cover I just finished reading Michael Lewis’ latest book – Flash Boys. I think whatever respect I held for Wall Street has been crushed.

I am sure that there are good people, just like there are bad people. But it feels like the good people are so out weighed by the bad people that the overall perception is that everyone on Wall Street is bad.

Flash Boys is the story of one man trying to level the playing field on Wall Street by starting his own exchange – IEX Trading.

Lewis does a good job at explaining what High Frequency Trading (HFT) is – at least I can follow what he was explaining – and how a greedy group of folks are raking in BILLIONS (yes with a B) of dollars by doing nothing but manipulating the markets.

Brad Katsuyama feels something is off and starts poking around and discovers things about Wall Street that I am sure only a very few know – how it works. And he discovers how the High-Frequency Traders are using speed and technology to manipulate the price of stock and make money off of the cents – or fraction of cents. But in enough volume, even the pennys add up

So he sets out to open his own Exchange (where stocks are traded) that levels the playing field. As he explains what is going to the folks that do the investing he opens many eyes, pisses off a lot of folks, and picks up some backers on the way.
But he is fighting a way of business that has been institutionalized on the Street and folks are hesitant to rock the boat.

But he gets IEX off the ground (they went live just Oct 2013 – less than a year ago) and seems to be slowly making a difference.

Here is to honesty and fairness.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s