While the world of trading securities is meant to be open to everyone and fair to all its participants, at least in a perfect world, critics have argued for a while that many large trading firms had an unfair advantage due to flash orders. These moves allow trading firms to freeze the order of an exchange for as long as half a second, which allows them to get a quick glimpse into the market and adjust their transaction accordingly.
 
SEC Chairman Mary Schapiro worried that flash orders could eventually create a “two-tiered market” in which long-term and short-term investors end up …read more

According to New York Democratic Senator Charles Schumer, many of the more prominent Wall Street firms have a significant advantage over smaller firms because of their ability to access certain information more quickly. In order to alleviate this discrepancy, Schumer has called for federal regulators to keep a more vigilant eye on these firms.
 
In a letter addressed to the Securities Exchange Commission’s chairman, Mary Schapiro, Schumer encouraged the SEC to take action regarding this practice. Schumer also warned the SEC that if it would not be able to do anything to remove or mitigate the advantage, he would be forced …read more