I’m not being naive or sociopathic here, I’m pointing out how securities law actually functions, at least in the U.S. It’s rarely as cut-and-dry as you suggest. The courts exist precisely to resolve ambiguity, and there’s always some ebb and flow depending on the administration and the legal environment.

Before throwing around labels like “naive” or “sociopath,” it’s worth recognizing that a capitalist system relies on efficient markets, and efficient markets depend on laws being tested and clarified through the courts. That process benefits everyone.

I’m not making an ethical defense of any specific behavior. I’m saying that just because someone benefits from mispricing in a market doesn’t automatically make it unethical. The courts help define those boundaries. If you reject that premise and prefer a system without capitalism, then we’re simply talking past each other.

And for what it’s worth, tossing out loaded terms like “naive” or “sociopath” isn’t exactly an argument, it’s just lazy rhetoric. It’s ok for us to disagree but why use such a lazy argument?

I'm not opposed to capitalism, and enjoy its benefits everyday. I don 't however agree that efficient markets are required for capitalism. I also don't think that HFT is the only way to create efficient markets.

I do however believe that gaming the system for personal profit is unethical. The intention of the law might have been to build a playground for people to enrich themselves, but from a Christian standpoint, I don 't think this always works out well for society. I'm not a Christian, but I do like some of its values.

I was a bit disappointed about the suggestion that capitalism requires certain things that make Jane Street a necessity. This is not a fact, nor does the current process benefit everyone equally. Rejecting that notion, and possibly reading a bit too much into that, is what caused me to use said terms.

I do agree that we are probably talking past each other though :)