New York Attorney General combats alleged unfair advantages for high-frequency traders

Simon Romano and Laura Levine -

In an effort to eliminate alleged unfair advantages provided by trading venues to high-frequency traders, New York Attorney General, Eric Schneiderman, has called for tougher regulations and market reforms in a speech made on March 18, 2014 at a symposium hosted by New York Law School.  The Attorney General’s speech is only part of a wider initiative launched last year examining advantages provided to high-frequency traders.

The Attorney General cites a number of services offered to high-frequency traders, including allowing traders to locate their computer servers within trading venues, providing extra network bandwidth to high-frequency traders, and attaching ultrafast connection cables and special high-speed switches to their servers, as providing high-frequency traders with the ability to make rapid trades in advance of the rest of the market, and claims that this is damaging the market as a whole. While often only a timing advantage of milliseconds, due to these services, high-frequency traders are able to obtain data feeds with pricing, volume, trade and order information in advance of other market actors.

High-frequency trading involves a significant proportion of overall trading on most markets.

For further details, see the March 18, 2014 press release available on the Attorney General’s website.

Trackbacks (0) Links to blogs that reference this article Trackback URL
http://www.canadiansecuritieslaw.com/admin/trackback/312637
Comments (0) Read through and enter the discussion with the form at the end
Post A Comment / Question Use this form to add a comment to this entry.







Remember personal info?