An article in the Financial Times on high frequency traders entering the FX, bond and derivative markets.

It notes potential upside:

The potential benefits to investors seem clear: trading will become cheaper and more transparent.

and potential downside:

markets plagued by computer errors and outages. Most worrying of all: the risk of a global flash crash across major markets linked by the speed traders.

Markets: In search of a fast buck
After disrupting the equity markets, high-speed trading is moving rapidly into bonds, currencies and derivatives
(gated)