High-Frequency Trading Faces Challenge as Schumer Presses SEC

Discussion in 'Wall St. News' started by ASusilovic, Jul 27, 2009.

  1. July 27 (Bloomberg) -- High-speed trading in the U.S. stock market may face its biggest threat after Senator Charles Schumer proposed prohibiting so-called flash orders.

    Schumer, the third-ranking Senate Democrat, urged the Securities and Exchange Commission to ban the practice in which some equity exchanges hold orders to buy and sell shares for a split second before publishing them on competing platforms. Nasdaq OMX Group Inc., Bats Global Markets and Direct Edge Holdings LLC, which handle more than two-thirds of the shares traded in the U.S., offer flash orders to their customers.

    Schumer’s July 24 letter raises the stakes in a debate over whether computer-driven trading by hedge funds and Wall Street firms gives them an unfair advantage over other investors. While flash trades make up less than 4 percent of U.S. stock volume, they’ve drawn criticism from the Securities Industry and Financial Markets Association, Wall Street’s main lobbying group, and New York-based NYSE Euronext.

    “It’s an arms race driven by technology,” said Sang Lee, managing partner at financial-services consultant Aite Group LLC in Boston. “Someone like Chuck Schumer getting involved in the process will create a deeper conversation about where the whole market is headed.”

  2. ?......lower? Conversation completed. :cool:
  3. Come on nazz,

    Kostin from GS has already "decided" 1070 is THE target. Funny enough, it's then 1.38 Fibonacci extension of March lows at 665.75 and June' s high of 957.50.

    I suppose Mr. Kostin just walked out of his office, walked the corridor to the office of one of the new fresh-from-university inhouse analysts who coincidentely was studying his next private trade on a Bloomberg terminal...:p :)
  4. 1) A 50% rally of the S&P-500 creates an upside objective of 1000, a "round" number.
    2) A 62% (fibonacci) rally produces a target of 1077, approximately equal to your 1070.
    3) I have used "zero-point-three-eight" for retracements but not for advances. :cool:
  5. AAA30


    Its the penny shaving that is pissing me off they should ban that first.