high-frequency trading

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Trader Gets 3 Years in First 'Spoofing' Conviction

He was found guilty of 'spoofing' trades

(Newser) - Futures trader Michael Coscia has earned himself a footnote in books about financial crime and a cell in a federal prison for three years after becoming the first person ever convicted of "spoofing" in the US. Coscia, the 54-year-old chief of the Panther Energy Trading firm, was the first...

SEC Moves to Control Robot Stock Traders

Commission proposes overhaul to trading rules

(Newser) - The SEC is finally trying to rein in the robots. Chairman Mary Jo White today announced a massive initiative designed to tame high-frequency traders, the Wall Street Journal reports. These automated trades currently make up more than half of all trading volume, yet they've almost totally avoided direct regulatory...

SEC Moves to Ban Lightning-Fast Trading

Flash orders let big investors buy and sell in milliseconds, harming slower traders

(Newser) - The SEC is seeking a ban on the financial technique known as flash orders, a controversial method in which powerful computers survey other investors' trades and adjust strategies within milliseconds to turn a profit. SEC head Mary Schapiro said that flash orders "may create a two-tiered market" since only...

Ultra-Fast Computers Corner Stock Market

(Newser) - Traders using high-speed computers are making billions of dollars and leaving the rest of the stock market in the dust, the New York Times reports. "High-frequency" traders, who use algorithms to make millions of trades in microseconds, have helped big banks and hedge funds bounce back quickly, but critics...

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