Did you watch last Sunday’s 60 Minutes piece about the “front running” by miiliseconds of large stock market shares purchases? The New York Times published a detailed article based on Michael Lewis’ Flash Boys book. The book describes how differences in data transport times — measured in microseconds — to multiple exchanges were used to profit a small amount on every large buy and sell order placed by legitimate stock trading firms.
I wrote about high frequency trading (HFT) four years ago in You Thought that Day Trading Was Fast?. It seems that the ethics of banks and brokers have not improved since then.
Thanks to my sister for the NYT link. It’s a juicy article.
April 25, 2014 – Mr. Lewis has been making the rounds of radio and TV talk shows. I’ve enjoyed listening to several of his radio interviews. Apparently the CNBC TV roundtable was heated: the CEO of the BATS exchange lied about his firm’s operations, which drew the attention of state and federal investigators.
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© Russ Bellew · Fort Lauderdale, Florida, USA · phone 954 873-4695