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S E C About To Ban Flash Trading

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Guest BoomBoomCrash

Expect someone from Goldman Sachs to decry this unfair market manipulation.

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Expect someone from Goldman Sachs to decry this unfair market manipulation.

You don't think it's going to apply to goldman sachs, do you? :lol:

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Nasdaq backs ban on "flash" trading: Schumer

WASHINGTON/NEW YORK (Reuters) - The Nasdaq Stock Market supports a ban on so-called "flashes," order types that it and other stock-trading venues send to a select group of traders fractions of a second before revealing them publicly, Senator Charles Schumer said on Tuesday.

The New York Democrat, who has urged the U.S. Securities and Exchange Commission to clamp down on the practice, said parent company Nasdaq OMX (NDAQ.O) is willing to submit to a potential ban by the agency after it "reluctantly" started offering flashes early last month.

Schumer said in a statement he discussed the controversial issue -- which has implications for fair prices and the way orders circulate through increasingly electronic markets -- in a personal call with Nasdaq CEO Robert Greifeld.

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Guest DissipatedYouthIsValuable

I thought no-one could use pre-execution order information to frontrun the markets?

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Flash trading, is that where they wear silk suits and lots of gold jewellery? Its all Dell boy banking to me these days anyway.

No. Flash trading is one of the reasons why Goldman Sachs is "considerably richer than yow"!

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Edited by MOP

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Bound to happen after that bloke stole their flash trading software.

Can't have anyone else stealing their free money.

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Guest DissipatedYouthIsValuable
No. Flash trading is one of the reasons why Goldman Sachs is "considerably richer than yow"!

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I'd love to see an egalitarian global trading system in action where everyone obeyed the same latency rules.

That would be free market capitalism.

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I thought no-one could use pre-execution order information to frontrun the markets?

You're spending far too much time on here you know.

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Breaking News: SEC Plans To Ban ‘Flash Trades’ That Give Advance Info To Certain Traders

SCHUMER ANNOUNCES THAT SEC PLANS TO BAN ‘FLASH TRADES’ THAT GIVE ADVANCE INFO TO CERTAIN TRADERS

In Personal Call With Schumer, SEC Chair Schapiro Pledges That A Ban On The Controversial Practice Is Imminent

Unfair Practice Gives Certain Traders Advance Knowledge of Buying and Selling Activity, Putting Retail and Institutional Investors At Unfair Disadvantage

Schumer, Having Urged SEC To Curtail Flash Orders In Letter Last Month, Praises Move

WASHINGTON, DC—U.S. Senator Charles E. Schumer (D-NY) announced Tuesday that the head of the Securities and Exchange Commission (SEC) has personally assured him that the agency plans to ban the practice of so-called “flash trading†that gives advance knowledge of stock orders to certain traders. SEC Chairman Mary Schapiro informed Schumer of the imminent ban—which she said would occur as part of a larger look at dark pools and high-frequency trading—in a personal phone call late Monday. The call came in response to a letter Schumer sent last month saying that the SEC should eliminate the practice or else he would offer legislation to do so.

In a statement Tuesday, Schumer praised the decision, adding that he believed the SEC would stay vigilant against future market innovations that might similarly harm transparency in the markets.

“We salute the SEC for moving forward with this ban that will restore integrity to the markets. The agency is absolutely making the right call by stepping up and ending this unfair practice,†Schumer said.

“It is also important to make sure flash orders aren’t just the tip of an iceberg lurking in the dark reaches of the market,†Schumer added. “There is a lot of mystery about what goes on in dark pools and in the realm of high-frequency trading generally. I am confident the SEC will be able to separate valid innovation from other practices that give certain traders an unfair advantage over others.â€

Flash orders are a type of trade order used in high-frequency trading, a technique that has gained attention recently for contributing to the spike in trading volume and, according to critics, increased volatility on U.S. exchanges. According to one industry estimate, high frequency trading accounted for $21 billion in profits in 2008.

Flash orders allow sophisticated high-frequency traders to gain access to trading information before it is sent out widely to other traders. For a fee, the exchange will “flash†information about buy and sell orders for just a few fractions of a second before the information is made publicly available. These traders, using super-fast computers, can then act on that early information to trade ahead of the pending orders. The practice can influence the pricing of stocks, experts say.

Last week, two major exchanges that offer the service indicated they would go along with a potential ban. Both NASDAQ and the Kansas City-based BATS exchange publicly acknowledged that flash orders can pose an inherent threat to the integrity of the markets. Meanwhile, another provider known as DirectEdge has defended the technique as a necessary source of liquidity for exchanges.

http://www.zerohedge.com/article/breaking-...s#comment-24018

So much for flash trading being a conspiracy theory then.

TFHers 1 Sceptics 0

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Ban on Flash Trades by SEC Is Imminent: Sen. Schumer

Published: Tuesday, 4 Aug 2009 | 12:15 PM ET Text Size By: Reuters

A US Securities and Exchange Commission ban on flash trades is "imminent," said a senior U.S. lawmaker in a statement on Tuesday.

Democratic Senator Charles Schumer said SEC Chairman Mary Schapiro "personally assured him that the agency plans to ban the practice of so-called 'flash trading' that gives advance knowledge of stock orders to certain traders."

"We salute the SEC for moving forward with this ban that will restore integrity to the markets," Schumer said.

The so-called "flash" trades allow some market players to see buy-and-sell information milliseconds prior to it being made available to the public.

Nasdaq CEO Robert Greifeld sent a letter to the Securities and Exchange Commission late last month. Greifeld wrote to SEC Chairman Mary Schapiro that concerns are "justified" about flashes and any order that is even briefly shielded from the entire market.

http://www.cnbc.com/id/32284889

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Bound to happen after that bloke stole their flash trading software.

Can't have anyone else stealing their free money.

Brilliant! Spot On. Beat me too it! :lol:

SEC wouldn't have moved a muscle otherwise.

Oh dear. How are these banks going to report profits now?

Whats the score in the UK? FSA to ban flash trading?

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Good thing we have free markets.

whats Flash Harry going to do for a living now?

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Guest DissipatedYouthIsValuable
whats Flash Harry going to do for a living now?

So, the investment banks do put magnets under their favoured numbers on the Roulette wheel.

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Watching you lot swallow the NYSE's propaganda hook line and sinker has made my afternoon worthwhile.

Cheers!

(and now we return you to your regularly scheduled crazy-wide spreads)

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Watching you lot swallow the NYSE's propaganda hook line and sinker has made my afternoon worthwhile.

Cheers!

(and now we return you to your regularly scheduled crazy-wide spreads)

:lol:

I hear they banned cocaine on wall street as well.

Hows that working out?

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