The electronically thundering herd that is the community of high-frequency traders has found a surprising ally: the European Central Bank. The Frankfurt-based institution published a working paper on its website Tuesday which came down pretty firmly on the side of the much-maligned cyber-traders, agreeing with their long-held presentation of themselves as a force for efficient and competitive markets. The authors of the report conclude that HFT generally goes in the direction of correct price signals and against “noise” or short-term volatility, promoting efficiency “both on average and on the highest volatility ... (full story)