Wall Street Market Manipulation Case Study

According to Ray, Muhanna, & Barney, common IT-business understanding entails a vital IT proficiency that influences performance (88). In relation to the Wall Street case study, IT proficiency (HFT) is seen to provide an unfair advantage on a market that should otherwise be even. HFT companies paid a lot of money to access fiber optic lines of communication and direct access to the market. As a result, they had a market advantage as they could predict the trading intents of other investors earlier than everybody else and acted on the information by means of fine-tuned programs. The individuals running market exchanges were tasked with being fair and evenhanded to ascertain a playing ground that is level. Yet, institutional investors were favored to the disadvantage of autonomous retail investors. The majority of Wall Street players and regulators seeming oblivious gives the impression of the market system manipulation.

Works Cited

Ray, Gautam, Waleed A. Muhanna, and Jay B. Barney. "Competing with IT: The role of shared IT-business understanding." Communications of the ACM 50.12 (2007): 87-91.