Saturday, April 19, 2014

High Frequency Traders Subpoenaed

New York Attorney General Eric Schneiderman sent subpoenas to six high-frequencytrading firms seeking information about special arrangements they have with exchanges and dark pools as well as their trading strategies, according to a person familiar with the matter.

High-frequency trading (HFT) is a type of algorithmic trading, specifically the use of sophisticated technological tools and computer algorithms to rapidly trade securities. HFT uses proprietary trading strategies carried out by computers to move in and out of positions in seconds or fractions of a second. The concept is to use speed and position to capture trading profits of as little as a fraction of a cent on a trade.

Despite all of the recent publicity, HFT is not something new, or threatening. Back in 2009, studies suggested HFT firms accounted for 60-73% of all US equity trading volume, with that number falling to approximately 50% in 2012.

For more information, High-Frequency Traders Said to Be Subpoenaed in New York Inquiry 

Mark Cuban's Idiot's Guide to High Frequency Trading

The attorneys at Sallah Astarita & Cox include veteran securities litigators and former SEC Enforcement Attorneys. We have decades of experience in securities litigation matters, including the defense of enforcement actions  We represent investors, financial professionals and investment firms and brokers nationwide. For more information contact Mark Astarita at 212-509-6544 or email us.

Post a Comment