New York Attorney General Discusses Ongoing Investigation of High-frequency Traders

Eric Schneiderman, New York state attorney general (Bloomberg)

Eric Schneiderman, New York state attorney general (Bloomberg)

Randy Diamond from Pensions & Investments reveals that New York Attorney General Eric Schneiderman said Friday that his office is investigating several high-frequency trading organizations that gain advantages by receiving market information early. Mr. Schneiderman would not name the organizations during comments at a business writers conference sponsored by the Society of American Business Editors and Writers in New York.

Mr. Schneiderman said small groups of traders are given the power to manipulate market movements when high-frequency data are connected with access to information. “This is what separates the ‘smart money’ from everyone else, ‘the dumb money,’” said Mr. Schneiderman, adding that it should be a huge concern to anyone who cares about the economy and the free flow of capital.

“It’s insider trading 2.0,” he said.

Read more

Advertisements
This entry was posted in Equity Markets, High Frequency Trading, Insider Trading, NASDAQ, NYSE, Wall Street and tagged , , , , , , , , , , , , , , . Bookmark the permalink.

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s