Demystifying high-speed trading

What value does high-frequency trading – a topic of intense discussion throughout 2011 – bring to the market? Why does it exist? And who does it affect?

Since the Flash Crash of May 6, 2010, when the Dow Jones Industrial Average plummeted nearly 1,000 points in less than 20 minutes, people have worried about the dangers of a world in which machines trade billions of pounds in stocks by the second.

What value does high-frequency trading - a topic of intense discussion throughout 2011 - bring to the market? Why does it exist? And who does it affect?

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