High-frequency trading introduces a great deal of risk into the market, billionaire investor Mark Cuban said Monday on CNBC.
"The risk isn't so much about the small investor," he said. "The risk is all these different high-frequency traders playing a game with their algorithms, trying to trick each other, to get in front of each other to make that trade.
"And because we don't know all the algorithms, because we don't know the end factorial, all of the different ways they may interact and the negative consequences that occur as a result. That introduces a market risk. That market risk has an unquantifiable cost."
On CNBC's "Halftime Report," Cuban said that he didn't know what the solution was.
"But what I do know is that high-frequency trading does nothing to stimulate or support capital formation in markets," he said. "I do know that the idea of owning a share of stock in the company is supposed to be about ownership in that company.