The search for a practical solution.

Clearly, technology has opened the door to a number of unfair and unethical trading practices that currently outpace the best efforts of regulatory organizations to control them.

The ultimate challenge, however, is not in recognizing the problems. The ultimate challenge is to find a practical and economical solution that addresses these inequitable activities:

■ Some participants use their technological superiority to make trades at a faster pace than other investors.

■ Some traders use technological trickery to gain unfair advantages in terms of market manipulation and price discovery.

Using technology to address inequitable trading practices.

In theory, the solution is readily apparent. You equalize the latency of trades and ensure that buyers and sellers meet in an open marketplace ruled by a transparent price discovery process. But in practice, those goals seem to lie beyond our reach in today’s overtaxed regulatory environment.

What many people fail to realize, however, is this: It is possible to use current technology to address the problems noted above and implement a reliable mechanism for regulatory oversight. These steps, in turn, will help restore the principle of fair trading for all investors regardless of the scale and scope of their financial resources.

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