City minister Paul Myners on Tuesday became the first mainstream UK politician to wade into the current debate on the dangers of high frequency trading (HFT).
Though his contribution will no doubt drown under certain other news, Myners’ views differ to the fairness-focused approach of SEC chief Mary Schapiro, concentrating instead on a potential subversion of the principles of common stock ownership.
From the BBC:
Companies could become the “playthings” of speculators because of super-fast automatic share trading, Treasury minister Lord Myners has warned.
The article continues:
“I have been increasingly troubled that we seem to find ourselves in a situation in which shares are to be bought and sold rather than being part of an ownership relationship between investor and a company,” he said
“The danger is that nobody really seems to think of themselves as owners.”
“The fact that people can own shares for nano-seconds seems completely divorced from the concept of a joint stock company and distributed share ownership”.
Now, without wanting to appear too cynical, the idea that the City minister is not already aware that listed companies have often become the “playthings” of speculators is rather strange.
What, for example, does he call this? Or this?
And what exactly did he think GLG Partners did for a living when he joined that hedge fund’s board?
Bizarre.
Related links:
Schapiro really is on the HFT case - FT Alphaville
HFT according to Greenwich: Friend or foe? - FT Alphaville
