FBI probes high-speed trading firms

The FBI is investigating whether high-frequency trading companies carry out insider trading or fraud by abusing fast-moving information they receive before other investors.

The agency is also looking at whether traders use the information to act ahead of orders by other investors, and whether they're manipulating the market by placing a set of trades and then very quickly canceling them.

News of the probe, which has been going on for a year, comes after author Michael Lewis accused high-speed trading firms of rigging the market in a new book called "Flash Boys."

The investigation adds to inquiries by other authorities, including New York Attorney General Eric Schneiderman. The Commodity Futures Trading Commission and the SEC are reportedly looking at the matter as well.

Related tickers: VIRT, KCG

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Comments (2)
  • Tschurin
    , contributor
    Comments (381) | Send Message
    Is the FBI more capable of conducting this type of inquiry than the SEC?
    1 Apr 2014, 08:00 AM Reply Like
  • Maobama
    , contributor
    Comments (508) | Send Message
    FBI/SEC here is a simple question to ask every HFT firm that you interview: If you are running a legitimate enterprise how to you manage to make money on 99.99% of trading days?


    Have the HFTs explain what service it is that they provide which virtually guarantees a profit every single day without taking any risk.


    The US public will continue to get fleeced. The Government will continue to be clueless. HFT's will continue to operate. Dark Pools will continue allowing trades away from public scrutiny.


    We no longer have a marketplace, it's a rigged casino.
    1 Apr 2014, 08:29 PM Reply Like
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