SEC General Counsel: Financial Markets Are Broken

October 20, 2012 7:00am by Barry Ritholtz

Ralph Ferrara, partner at Proskauer Rose LLP, talks with Bloomberg Law’s Lee Pacchia about the problems presented by high frequency trading and potential solutions. Ferrara says that certain policy changes made by Congress in the mid-1970’s had the effect of decentralizing financial markets and diminishing the presence of human controls over trading activity. In his opinion, the resultant market fragmentation combined with high frequency trading has led to a broken, two-tiered system that could force retail investors out of the market and fundamentally change the notion of capitalism in the United States.

Ferrara served as General Counsel to the Securities & Exchange Commission from 1978 to 1981.

Ex-SEC GC: Financial Markets Aren’t Rigged, They’re Broken

Bloomberg Law, Oct. 19 2002

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