Tradeworx' defense of their HFT strategies

The issue I have with this (making comparisons to the old exchange model) is that the HFT guys get the rights of exchange membership such as the first look at the book, without the obligation of having to post a 2 sided market all the time. Historically, when we've collectively allowed someone to stand there and make the spread, they've also had to eat some risk on the bad days too.
 
Quote from Traveler: HFT guys get the rights of exchange membership such as the first look at the book.
They don't. Information that HFTs are using is available to everybody.
 
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