SEC takes aim at flash orders, an old Street trick
The SEC, acting with uncharacteristic speed, has voted today to consider a ban on flash trading — a subset of high-frequency trading that has recently come in the cross-hairs of esteemed lawmakers like Sen. Chuck Schumer. But flash orders are nothing new according to Bloomberg:
Flash orders, which make up a small percentage of high- speed trading and have drawn the most criticism, trace their roots as far back as 1978 to efforts by exchanges to electronically replicate how a trader might yell an order to floor brokers before entering it into the system that displays all bids and offers.
via SEC Proposes Ban on Allowing Stock Flash Orders Update1 – Bloomberg.com.
31 years for SEC action. Not bad.
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