Doesn’t flash trading basically contribute compute to force prices to settle at equilibrium faster thereby improving pricing efficiency?
I’m not sure it’s worth the required effort input at a system level vs other places the effort could be applied, but there is at least some abstract benefit to it, I think.
A study by the SEC in 2014 stated that very high trading frequency is "unnecessary" (below 0.2s), but failed to identify clear downsides or damages to the markets.
