Seeking Alpha

CME sued over HFT

  • Three former CBOT floor traders claim the CME and CBOT (both owned by CME Group) sold information to high-frequency traders - allowing them a peek at futures orders ahead of the rest of the market.
  • “We have only one data feed, no one can buy it to be faster than anyone else,” says a spokeswoman for CME Group. “No trader can see any other person’s order until it hits the order book, when it is made public.”
  • While the suit is not inspired by the Michael Lewis book, claims the trio's lawyer, she says her clients "felt vindicated" by it.
Comments (1)
  • Skylane15
    , contributor
    Comments (8) | Send Message
     
    Another suit brought by members against the board and mgnt, both these suits are brought by members. Members who have been in the business for years, these members know they have been cheated. The board will lose one or both of these suits. These suits are not brought lightly, and no law firm takes on this kind of battle unless there is substantial probability of winning. There will be more suits, and when the HFTs are found to have received unfair information the exchanges will be held liable. It will cost the exchange in the billions.
    14 Apr 2014, 02:40 PM Reply Like
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