What do they call micro-second e-trading?

Read a recent NYT? article that described how a number of WS brokerage houses using in-house minis running simple algorithms are able to take advantage of minute stock price fluctuations on a second to second basis. A minor:) side effect is that they are basically manipulating the market.

What do those in the know call this phenomenon?

The answer is high-frequency trading.

Found the Times article.

And here’s Scott Patterson on the subject in a Jon Stewart interview.

Mods, you may close the thread. If someone wants to take the subject to GD or the Pit, I’d love to watch.

Closed at request of the OP. Anyone wishing to follow up on this question is welcome to start a thread in the appropriate forum.

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