- Joined
- 3/28/14
- Messages
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Interesting news on high frequency trading: the lawyer who successfully prosecuted Big Tobacco 20 years ago is now bringing a class action suit against several big exchanges.
Most of the Guardian article is old criticism of HFT, but the premise of the suit seems to be that because some banks pay billions to have faster access to stock exchange servers (fiberoptic cables etc), they are able to manipulate the market in such a way that the public doesn't have a chance to see accurate stock prices, violating the exchanges' promises to their subscribers.
http://www.theguardian.com/business/2014/jun/07/inside-murky-world-high-frequency-trading?CMP=twt_gu
http://www.usatoday.com/story/money...ock-exchanges-threatened-by-lawsuit/10175995/
Any thoughts?
Most of the Guardian article is old criticism of HFT, but the premise of the suit seems to be that because some banks pay billions to have faster access to stock exchange servers (fiberoptic cables etc), they are able to manipulate the market in such a way that the public doesn't have a chance to see accurate stock prices, violating the exchanges' promises to their subscribers.
http://www.theguardian.com/business/2014/jun/07/inside-murky-world-high-frequency-trading?CMP=twt_gu
http://www.usatoday.com/story/money...ock-exchanges-threatened-by-lawsuit/10175995/
Any thoughts?
