NY Attorney General Stirs Debate on HFT Perks
As part of his Insider Trading 2.0 investigation, Attorney General Eric Schneiderman is scrutinizing services like that offer high-speed traders the ability to profit from information before other investors see it.
Specifically, Schneiderman is probing HFT's access to more in-depth market data feeds, higher bandwidth, faster cable connections and colocation, a practice which allows Wall Street banks and high-speed traders to place their computer-driven strategies in data centers closer to the exchange's matching engines.
Firms pay thousands of dollars per month to install their algorithms in these data centers.
Rather than curbing threats by high-frequency traders, markets too focused on catering to them https://t.co/IuBMjE7B2X pic.twitter.com/PDLsjWqWIX
— Eric Schneiderman (@AGSchneiderman) March 18, 2014
Love how aggressively @AGSchneiderman is going after Wall Street shenanigans. reminds me of another AG I was a big fan of.
— Sean Basinski (@SeanBasinski) March 21, 2014
Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad ... View Full Bio
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