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Hans Metzler From Kirsten Bischoff, Opalesque New York:

When the steam hammer was created in the late 1800s it inspired the folk legend of John Henry. John Henry was a giant of a man and the "greatest steel driver" in the world. He went head to head in a battle for the jobs of his colleagues fighting against the technological evolution that was the mighty steam engine. In the end man beats machine, but sadly, John Henry dies for his victory.

While nobody believes traders will begin to drop dead (at least no more than usual) in competition with high frequency algorithms, there is a certain allusion to the fabled tales of man versus machine when hedge fund managers discuss high frequency trading. And these emotions are reflected in the ongoing discussion of whether or not algorithmic black box strategies help or hurt the markets.

Perhaps best summed by the words of Hans Metzler, CEO at $800m Euro manager Conservative Concept at the latest Opalesque Frankfurt Roundtable, "Of course, nobody likes people that kind of just run computerized money making machines, but they do add liquidity," he commented. That sense of "other" is often one that befalls HFT and, the wariness of these strategies that was inspired by the nerve-wracking "Flash Crash" is all part of the PR battle that the high frequency trading industry lik......................

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