23 March 2012 17:00

SEC launches high frequency trading probe

Bats Big

The U.S. Securities and Exchange Commission is investigating claims that some high frequency trading firms have used their close physical links to computerized stock exchanges to give them an unfair advantage over other investors.

The investigation is focused on the computer-driven trading platforms of exchanges, including BATS Global Markets, and will examine whether firms collude to limit competition or manipulate markets.

The SEC has sent letters to several high-frequency trading firms to request information about their trading activities, and their communications with exchanges.

However, the regulator is keen to stress that the probe is still in its early stages, and that there is no suggestion of wrongdoing on the part of exchanges or trading firms.

High-frequency trading firms rely on super-fast trade executions and short-term strategies to make lots of small profits from momentary price fluctuations.

This latest investigation is part of a larger probe into high-frequency trading that was instigated after the "flash crash" of May 2010, when stocks fell sharply and then rebounded within minutes, partly as a result of glitches in computerized trading systems.

 

Post comment

Related debate

  • 1 week
  • 1 month
  • 1 Year
03 Mar
OMXC20
Kære alle brugere af EI,   Da EI tilsyneladende ikke bekymrer sig besynderligt omkring debat niveaue..
34
01 Mar
VWS
God søndag til alle.   Jeg faldt over denne timelapse-video der viser flere detaljer end normalt omk..
25
01 Mar
 
For første gang i mange år har jeg prøvet at krydstabulere på EET depot, - inden revisoren får det. ..
15
27 Feb
OMXC20
Med al respekt...   Det kan ikke afvises der kommer en mindre korrektion fra tid til anden, men spør..
13
01 Mar
 
Hej, Så er vi igennem uge 8 & 9 og finanshusene har opdateret deres estimater for 2015 de nordiske ..
12
28 Feb
SAS-DKK
Man burde betale folk en ordentlig og en anstændig løn for deres arbejde.   På sigt vil ingen jo arb..
12
27 Feb
OMXC20
Om få dage starter ECB's obligationsopkøb på 60mia+ euro om måneden i mindst 18 måneder. Det vil sæn..
11
02 Mar
SAS
Selvfølgelig bliver det ikke den sidste. Når fronterne er trukket så hårdt op betyder det at der opb..
10
01 Mar
MY
Mine egne investeringer i China Ming Yang Først og fremmest vil jeg gerne pointere, at jeg har ejet ..
10
04 Mar
BAVA
HISTORISK dag med den ved "best case scenario" meget lukrative partneraftale med BMS vedrørende Pros..
9

Tech Companies Send Criticism Along With NSA-Related Data -- Update

04/02/2014 00:06:00
By Danny Yadron Technology companies including Google Inc. and Microsoft Corp. released new figures on the amount of data requests they received from U.S. ..

U.S. Hot Stocks: Hot Stocks to Watch

03/02/2014 14:07:00
Among the companies with shares expected to actively trade in Monday's session is Herbalife Ltd. (HLF). Herbalife Ltd. (HLF) raised its fourth-quarter outl..

Pfizer Study Meets Primary Endpoints

03/02/2014 13:05:00
Pfizer Inc. (PFE) said Monday that a Phase 2 trial of its advanced breast cancer treatment met its primary endpoint. Pfizer said a study comparing the effec..

Most read news

  • 24 hours
  • 48 hours
  • 1 week
1
ALBIOMA : Annual results
2
Polarcus awarded broadband 3D seismic acquisition project in the Mediterranean
3
BOURBON: Full Year 2014 - Robust performance driven by good cost control in a challenging environment
4
Scana Industrier ASA - Scana Steel Stavanger has resolved to file for bankruptcy
5
INGENICO GROUP: Ingenico Mobile Solutions supporting mPOS momentum in Italy

Copyright Euroinvestor A/S 2015   Disclaimer and Terms of Use
Quote information is delivered by Interactive Data.
Data is delayed 15-20 minutes according to the distribution agreements set by the different exchanges.
 
05 March 2015 02:30:26
(UTC) Dublin, Edinburgh, Lisbon, London
Version: LiveBranchBuild_20150225.2 - EUROWEB2 - 2015-03-05 03:30:26 - 2015-03-05 02:30:26 - 1000 - Website: OKAY