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July 30, 2010
Brattle Senior Advisor Michael Goldstein Quoted in Traders Magazine on High Frequency Trading

Brattle senior advisor Michael Goldstein, a professor of finance and faculty director for The Stephen D. Cutler Center for Investments and Finance at Babson College and a member of the Financial Industry Regulatory Authority (FINRA) Economic Advisory Board, was quoted in an article in Traders Magazine on July 30, 2010. The article, “Trading Speed: Time to Put the Brakes On?” discusses the debate over capping trading speeds in the wake of the May 6th “Flash Crash”. The U.S. Securities and Exchange Commission is currently reviewing three ideas to rein in the speed of trading, including a mandated floor on the overall movement of data, batching trades at minimum intervals, and instituting a minimum time that quotes must remain accessible. Professor Goldstein, who took part in a SEC roundtable on this topic last month and favors an overall floor, says in the article, “Trading happening at one millisecond or faster isn't the purpose of the stock market. It's to allocate capital, and I believe it hasn't been doing that any better than in 2007, when markets were slower." For more information and to read the article, please visit the Traders Magazine website.

ASSOCIATED EXPERTS
Michael A. Goldstein
Academic Advisor
Babson College
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