Disclaimer) I work in HFT and this is all anecdotal.
I have found very little correlation between advanced degrees and ability to determine valuable trading strategies. In fact, the strategies that most people bemoan the most with HFT require the least amount of mathematics because they are very simple.
I've also worked outside of trading in both big institutions & start ups. The ratio of genius to average to bad seems about the same in all of these environments.
As far as the common pool resource approach, the problem with that is that it will most likely tilt the balance of power in the markets even further into the hands of a few giant institutions. Why it is popular to protect the poor investment bankers from the ravages of HFT baffles me.
I have found very little correlation between advanced degrees and ability to determine valuable trading strategies. In fact, the strategies that most people bemoan the most with HFT require the least amount of mathematics because they are very simple.
I've also worked outside of trading in both big institutions & start ups. The ratio of genius to average to bad seems about the same in all of these environments.
As far as the common pool resource approach, the problem with that is that it will most likely tilt the balance of power in the markets even further into the hands of a few giant institutions. Why it is popular to protect the poor investment bankers from the ravages of HFT baffles me.