Mark Cuban, billionaire owner of the Dallas Mavericks and one of the best business minds in the world today, took some time to speak with CNBC this week. The discussion was regarding high frequency trading, one of the most important and least understood components of the stock market today.
The following is part one and two of the discussion where Cuban has the chance to explain that these traders do nothing to fundamentally help the markets. It is only a profit center for trading firms where in many ways they are just stealing from other participants in the market by jumping in front of trades that are placed.
If you are looking to understand high frequency trading further, I would strongly recommend reading the incredible book Dark Pools, which was one of the two must read books released this year so far (The New Depression being the other).
During the interview Cuban is asked if he sees another flash crash coming (where the DOW fell 1000 points in less than 15 minutes), which was caused directly by high frequency trading.
"No," he responds. He sees something coming that will be far, far, worse.
Part two of the discussion with Mark where he has a chance to discuss the issues directly with a member of a high frequency trading firm.