impossibility. >> actually, high-frequency traders are getting the same market information that joe saluzzi gets. they're just getting it a little bit sooner. it's only a few fractions of a second sooner, but if you're running supercomputers, saluzzi says, it can be an eternity. what you're saying is, the people with the fastest computers have an advantage. they get the best deals. >> every time. absolutely, there's no doubt about it. i mean, if they're spending that kind of money and they're using that type of infrastructure, they're doing it for a reason, and it is to get a speed advantage in that respect. >> it's not just the speed of the supercomputers that's important. it's also their physical location. the closer they are to the stock exchange's server, the quicker they'll be able to get critical market information. >> well, this has been in the works for at least

>> millions, if not billions, of dollars a year. >> that edge, joe saluzzi claims, has made high-frequencyhe new insiders on wall street. and he says he spots signs of predatory behavior every day. saluzzi, who trades large blocks of stock for institutional investors, says the supercomputers are programmed to place and then cancel thousands of orders a second, trying to sniff out which way a market is moving in order to jump in ahead of big rallies and sell off before big declines. he calls them parasites who exploit a technological advantage to suck money out of the market and add no value. does it raise capital for companies? >> absolutely not. if anything, it's distracting from the capital-raising process. >> do these high-frequency trades have anything to do with market fundamentals? >> valuation is irrelevant. it's all about just moving the price up and down the ladder all day long. each day is new. each day starts fresh. so you have to question the true valuation of the markets now. >> larry leibowitz of the new york stock exchange says there is absolutely no evidence that small inve