Low volatility has been the norm in the markets during the past few weeks. One veteran trader Art Cashin is of the opinion that this maybe due to the high frequency traders sitting out for the moment.
Well this maybe true. US SEC Chair Mary Jo White has said that she will be rewriting the rules for high frequency trading later this year. “With these investigations happening, some of the high-frequency traders may have decided that discretion is the better part of valor, and they’re not playing,” he told CNBC’s “Closing Bell.” According to Art, low volatility in the market doesn’t mean that bad times are ahead.