I’m glad that this is finally getting the airing it is due.
HFT is front-running and bid-rigging, Nothing more, nothing less.
The promised extra liquidity and depth of book we were promised hasn’t materialized and at the first sign of trouble in the “flash crash,” the HFT clowns fled the market.
All orders should remain on the tape for a minimum of 30 seconds or until filled. That’s a tax-free way to put a stop to this.
Why the hell should a trading firm be required to hold a bid or offer out there for that long under changing market conditions? Would you?
If you want to slow the markets down, go back to the old days when lead market makers were guaranteed a minimum, meaningful spread. That used to be called 'unfair', too.
No one is going to provide liquidity when there's no opportunity to make money.