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)