Before the August recess, Sen. Charles Schumer (D-NY), was pushing for an end to "High Frequency Trading," saying, in a letter to Securities and Exchange Commission chair Mary Schapiro:
If the SEC fails to curb this practice, I plan to introduce legislation in the U.S. Senate to prohibit the use of flash orders in connection with optional pre-routing programs in order to ensure that trading in U.S. public capital markets is fair and transparent for all market participants.
So what exactly is this practice that has Sen. Schumer so concerned? Marketplace's Paddy Hirsch explains in this Whiteboard video:
High-frequency trading from Marketplace on Vimeo.
Posted
08-18-2009 9:46 AM
by
Graham Griffith