Comment Re:Delays destabilize the system (Score 2) 212
This would be credible if the HFT guys bought everything and waited for a buyer to come along, then sold at a modest profit. This would add liquidity.
But they are not, they only buy when they know there is a real buyer in the market already, so they can get in and out quickly with their profit. As the buyer is already in the market they are not adding any liquidity that is not already there, they are just skimming.
I'm an electronics engineer and have had postgraduate courses on this. Any delay introduced in the feedback loop will tend to destabilize the system. HFT works fine, it provides liquidity to the market, it benefits everyone.