: Value Investing Forum - Singapore, Hong Kong, U.S.

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SGX plans to start high frequency trading program.
you can refer to the latest result briefing materials:$file/4QFY2011_Results_Briefing.pdf?openelement

Hidden in page 24 is the information that there is a sharp increase of 61 co-location server racks just over the last 3 months. Looks like really going full force into HFT. Willl there remain a livelihood for human traders?
I read about Goldman's HFT before. Seems like the system is built for these investments banks to profit at the expense of others. Reason being, when the software spots a buying pattern, it will quickly place a bid to outbid the potential buyer, then later sell it to him at a higher price.

Don't really understand why such system is allowed to operate. Does it help to make the market more efficient?