Larry Tabb argued in 2014 that high-frequency trading (HFT) was part of a competitive U.S. equities market that had lowered execution costs and helped prices reflect supply and demand. He rejected the claim that the market was “rigged,” while acknowledging that fragmented venues and differences in trading speed could create market leakage. Those are Tabb’s dated arguments, not a verified statement of his current position or a settled verdict on HFT.
Who is Larry Tabb?
Larry Tabb founded TABB Group, a capital-markets research firm that says it was founded in 2003. A U.S. Senate hearing notice also identifies him as the firm’s founder and CEO and confirms he appeared at a September 20, 2012 hearing on computerized trading and the rules of the road. The notice establishes his role as a witness, but it does not, by itself, establish what he said at the hearing.
Sources: TABB Group’s about page and the Senate hearing notice.
What did Tabb argue about HFT?
In a 2014 response to the debate surrounding Michael Lewis’s Flash Boys, Tabb disputed the characterization of U.S. equity markets as rigged. He wrote, “No, Michael Lewis, the US equities market is not rigged.” He described electronic markets as more competitive, less expensive, faster, and more open than before, arguing that market makers, speculators, proprietary traders, and HFT firms all contribute quotes that help determine prices.
Crashes, No Sound, or Screen Glitches?
Random freezes, missing sound and display glitches usually trace back to one bad driver. Find and replace yours safely.Free scan · under a minutePC Slower Than It Used to Be?
A free scan shows the junk files, broken settings and background clutter dragging Windows down - then fixes them in one click.Free scan · Windows 10 & 11#1 Best Overall
Tabb’s point was not that every HFT strategy benefits every investor. Rather, he argued that trading by fast firms can be part of price discovery—the process through which buying and selling help establish market prices—and that competition among participants and venues can improve execution. These claims are his position in that 2014 response, not a universal finding.
He also acknowledged a drawback: fragmented venues and differences in speed can create market leakage, meaning information or trading intentions may be exposed as orders move through the market. Tabb argued that this did not mean prices stopped reflecting supply and demand, and said leakage was declining at the time. That assessment is specific to his 2014 commentary, not evidence about conditions in 2026.
Rank #2
- Ideal for Gifting
- Ideal for a bookworm
- Compact for travelling
Source: Tabb’s 2014 response, republished by MarketScreener.
Is high-frequency trading good or bad for the market?
The evidence here does not support a simple yes-or-no verdict. The SEC’s June 2, 2010 market-structure roundtable records competing participant views; it is not a single agency conclusion. Some speakers said electronic trading and HFT could connect fragmented venues, support price discovery, narrow spreads, and reduce transaction costs. Others raised concerns about predatory strategies, instability, market malfunctions, and the risks of market design.
A useful assessment separates the questions that are often bundled together:
- Liquidity and spreads: Do fast firms provide accessible buy and sell quotes, and do those quotes remain available when markets become volatile?
- Execution costs: Do narrower quoted or effective spreads translate into lower costs for investors after fees and order-routing effects?
- Price discovery: Do fast traders incorporate information and connect prices across venues, or do speed advantages create harmful information asymmetry?
- Resilience: How do strategies behave during sudden order imbalances, erroneous trades, or other periods of market stress?
- Competition and access: Does venue competition encourage choice and innovation, while also making order routing and oversight more complex?
The roundtable documents arguments on both sides of these questions; it does not settle them. Tabb’s 2014 response emphasizes competition, lower costs, and price discovery, while acknowledging leakage. Neither source establishes that HFT always improves markets or that its risks outweigh its benefits in every circumstance.
Rank #4
Source: SEC market-structure roundtable transcript and materials.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How should Tabb’s historical HFT figures be read?
In the same 2014 response, Tabb cited TABB Group estimates that U.S. equity trading revenue generated by high-frequency firms was approximately $7.3 billion in 2009 and approximately $1.3 billion by the time of the response. These are historical estimates attributed to TABB Group, not current revenue figures, and they should not be used to describe the size of today’s HFT market.
Do these 3 things before closing this tab:
1Clear out junk files and repair common Windows errors2Scan for outdated or missing drivers - takes under a minute3Repair Windows errors before they cause bigger problemsBest Value
- It can be a gift option
- Comes with secure packaging
- Helpful in various ways
Source: Tabb’s 2014 response, republished by MarketScreener.
What can be said about Tabb’s view today?
The clearest directly attributed HFT commentary in the available sources is Tabb’s 2014 response. The SEC transcript dates to 2010, and the Senate notice confirms his 2012 witness role without providing testimony. These records document his historical argument and the wider debate, but do not establish his current view. A TABB Group announcement about a report co-authored by Tabb describes coverage of HFT strategies, market structure, pros and cons, and regulatory issues in a 2009-era research project; it is not a current market assessment.
Sources: TABB Group research announcement and the Senate hearing notice.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
Recommended Free Tools
