See: Speedy New Traders Make Waves Far From Wall St.
I was reading this article in the times and it just illustrated the fallacy of the argument that high frequency traders provide indispensable liquidity in the markets. Like all other normal or continuous trading assumptions about markets we question here this is one more. These assumptions work in normal times, but when they are most needed, they don't. And it makes dynamic or continuous time derivatives hedging potentially disastrous.
And this is where BICs, with there pre-determined contractual agreements provide economically valuable edge.
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