John Cochrane (of U. Chicago) has an enlightening post about the practice of spoofing (creating fake orders to lure other traders to do stupid things). Suffice to say, Cochrane isn't a big fan of regulation that prevents traders from being dumb. He's probably right.
This is a bit of a repost - but is relevant as we talk about fees. Back in February I wrote a white paper that was a back of the envelope analysis of the fees paid buy the pension fund, including some hidden fees such as trading costs. You can read the paper here . It was referenced in this article on Forbes that talks about indexing pension funds.
Nice summary of why US financial markets are probably not myopic. http://www.newyorker.com/magazine/2015/08/24/the-short-termism-myth HT: Newmark's Door .
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