Is Fed Making Life Tougher for High-Speed Traders?

What's the problem here? None of this stuff affects people who invest. Arguably, better executing algorithm adds value to investors.

So who cares if short term traders are impacted? Are the short term traders' welfare more important than the "machines"? What about the machines' designers' welfare? Why are they subservient to that of a scalper?

Quote from Chausey:

Flash crashing kills confidence in the real market, which lies between two real human beings. The greater good is at stake. If that's free market then so be the consequences of ruining a century old platform to facilitate transactions between real humans.
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Again, flash crashing destroys confidence in the market. Machines do not input confidence, while other market participants do. Those people are leaving, volume is decreasing and only the Fed can backstop the market on a daily basis now.
 
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