SEC moving toward banning flash orders
Securities and Exchange Commission takes steps toward banning flash orders
By Stephen Bernard, AP Business Writer
NEW YORK (AP) — The Securities and Exchange Commission is moving toward banning a trading practice that gives some brokerages a split-second advantage in buying or selling stocks.
SEC Chairwoman Mary Schapiro said in a statement Tuesday that the agency is working to create a rule to ban the trades known as flash orders.
Flash orders give certain members of exchanges including Nasdaq, Direct Edge and BATS the ability to buy and sell order information for milliseconds before that information is made public. High-speed computer software can take advantage of that brief period to allow those members to get better prices and profits…
Sen. Charles Schumer, New York Democrat, a critic of the orders, said in a statement that Schapiro personally assured him the SEC would ban the practice. Last month, Schumer sent a letter to the SEC urging it to eliminate flash orders and said that if it didn’t, he would write legislation to do so…
Full Banning Flash Orders article here >>.
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Ain’t That A Shame
