Capital Account Season 1 Episode 118 Eric Hunsader On Sex and Corruption Lawsuit at the SEC and HFT Jaywalking

In episode 118 of Capital Account season 1, the host Lauren Lyster interviews Eric Hunsader, the founder of Nanex, who discusses his controversial ongoing lawsuit against the U.S. Securities and Exchange Commission (SEC). Hunsader alleges that the SEC is withholding important records that could implicate high-frequency traders (HFTs) in market manipulation and that the SEC is corruptly protecting these traders.

Hunsader argues that HFTs are able to profit from getting ahead of non-HFTs and that they often engage in predatory strategies that harm regular investors. Despite this, Hunsader claims that the SEC has been reluctant to crack down on these practices and that it may even be colluding with HFTs to maintain the status quo.

Aside from discussing his lawsuit, Hunsader also touches on the issue of HFT jaywalking, a phenomenon where traders engage in illegal strategies but are not punished because regulators like the SEC are not able to detect or enforce rules against these violations. Hunsader argues that HFT jaywalking is rampant and that it poses a serious threat to the integrity of financial markets.

Throughout the episode, Lyster and Hunsader dig into the larger themes of corruption and accountability in the financial sector. They discuss why many regulators and policymakers are hesitant to take action against powerful financial players, and explore what steps can be taken to address these issues. Despite the seriousness of the topics at hand, Lyster and Hunsader maintain an accessible and engaging tone, making this episode informative and thought-provoking.