Despite the furor over whether high frequency trading is "rigging" the U.S. stock markets, more regulations aren't necessary, Harvey Pitt, a former chairman of the Securities and Exchange Commission (SEC) told CNBC.
"We don't need more regulation or less regulation. We need smarter regulation," Pitt said. "The rules that are already on the books take care of any of the problems that are raised by high frequency trading."
The publication of journalist Michael Lewis' latest book "Flash Boys," set up a heated debate in the financial world over whether traders using powerful software and algorithms have "rigged" the stock market.
The book details how the founders of new trading platform IEX grew disillusioned with high-frequency trading and what they saw as its legalized "front running" of slower traders.