Sec Needs Bigger Budget To Police Trading, Chair Says

trades for the sole purpose of interfering with trading that would have happened without it. In buying from every seller and selling to every buyer, it winds up (a) doubling the trades in the marketplace and (b) being exactly 50 per cent of that booming volume. Similar to front running, an illegal practice in which a broker trades stocks based on information clients have not received, high-frequency trading is technological front running, Lewis says, and fits within the current laws. He blames a U.S. rule, intended to create equal opportunity, which failed to mention speed of trading. It allowed a small class of well-resourced insiders to preview the markets and trade on what they had seen.
Source: http://www.thestar.com/business/personal_finance/2014/04/01/canadian_is_hero_of_us_book_on_trading_roseman.html

I can’t imagine that’s our last flash crash.” Read More Michael Lewis and why the stock market is ‘rigged’ During an earlier interview on “Squawk Box,” Themis Trading co-founder Joe Saluzzi said high-frequency trading is a symptom of a stock market that has made simple tasks increasingly more difficult. But that also makes solutions deceptively easy, he added, While an outright ban on high-frequency trading doesn’t seem necessary, Saluzzi says he believes two quick fixes could help shore up the inequalities caused by firms equipped with high-speed cables and powerful trading software. “It’s an overly complex system to do a very simple task,” Saluzzi said. “You want to buy.
Source: http://www.cnbc.com/id/101538618

Trading Technologies to Offer High-performance Link to HKEx’s Futures Exchange

Because it is a highly technical and complex probe it will likely take months. Steve Kroft reports on a new book from Michael Lewis, “Flash Boys,” that reveals how a group of unlikely characters discovered how some high spee… As Steve Kroft reported Sunday on “60 Minutes” , this month marks the fifth anniversary of the current bull market on Wall Street, making it one of the longest and strongest in history. Yet U.S.
Source: http://www.cbsnews.com/news/fbi-to-probe-high-frequency-stock-trading/

‘I’m worried’ about high-speed trading: Former Pimco exec

A big trade, such as a bank shorting a million shares of a company under investigation, could be considered a material event, the spokesman added. A person familiar with the FBI probe told Reuters on Tuesday that the FBI is also looking at areas such as whether high-speed firms can cut the line in terms of how security orders are placed or are engaged in “spoofing” trades that are not really trades to give the illusion of market activity. White declined to answer questions from Reuters on the sidelines of the hearing about whether the SEC’s probes are exploring similar topics as the FBI’s. The long-running debate about high-frequency trading intensified on Monday, after bestselling author Michael Lewis published a new book, “Flash Boys: A Wall Street Revolt.” The book contends that high-speed traders have rigged the stock market, profiting from trades made at a speed unavailable to ordinary investors. Proponents of high-speed trading have criticized the book, saying high-speed traders actually benefit other investors by providing liquidity to the market. For years, the SEC has been looking into high-speed trading and “dark pool” trading, which takes place away from major exchanges.
Source: http://www.reuters.com/article/2014/04/01/us-congress-sec-highspeed-idUSBREA301RC20140401?feedType=RSS

FBI to probe high-frequency stock trading

(TT), a global provider of high-performance professional trading software, today http://www.etftradingsignals.com announced that it will introduce connectivity to the Hong Kong Futures Exchange Limited (HKFE) in the second quarter of 2014. One of the largest derivatives exchanges in Asia by volume and a wholly owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEx), HKFE is home to futures and options on the benchmark Hang Seng and Hang Seng China Enterprises, or H-shares, indexes, a wide range of stock options and Renminbi Currency Futures. We welcome TTs plan to introduce connectivity to HKFE, which will give its large pool of clients easy access to a high-performance connection for trading Asian derivatives listed on HKFE from anywhere in the world, said Calvin Tai, HKExs Co-head of Equities & Fixed Income & Currency. Rick Lane, CEO of Trading Technologies, said, The Asian derivatives markets, and in particular China, had a strong 2013.
Source: http://markets.financialcontent.com/stocks/news/read/26842268/Trading_Technologies_to_Offer_High