Counterparties

Dark pools’ lifeguard

July 7, 2014

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“Insider Trading 2.0,” New York attorney general Eric Schneiderman’s war on high-frequency trading abuses, wages on. At the end of June, Schneiderman filed a complaint against Barclays over the activity of the firm’s dark pool, Barclays LX, which is the second-most active alternative trading system in the United States. Schneiderman is accusing Barclays of fraud, suggesting that instead of protecting investors in the dark pool from high-frequency traders (as advertised), the firm did the opposite, and actually “operated its dark pool to favor high frequency traders.”

High-frequency news

June 6, 2014

Yesterday, Securities and Exchange Commission chair Mary Jo White gave a speech about the current structure of US markets. Her comments directly addressed the controversy over high-frequency trading (HFT) and dark pools (trading outside of exchanges) brought up by Michael Lewis’s book “Flash Boys” and New York Attorney General Eric Schneiderman’s recent series of moves to try to ban HFT. Lewis’s one-sentence summary of his book on a post-release interview: “The US stock market… is rigged”.

MORNING BID – The Cleveland Administration in the market

April 2, 2014

It took the market a little while to get the full measure of the day’s biggest economic news. (And no, it wasn’t the shout-fest on CNBC that seemed to have resulted in the delaying of an IPO and one of the first real reckonings among many people about the ramifications of high-frequency trading.)

US stock ownership: Fact-checking Michael Lewis

By Ben Walsh
April 1, 2014

Before the flash crash, 67 percent of U.S. households owned stocks; by the end of 2013, only 52 percent did: the fantastic post-crisis bull market was noteworthy for how many Americans elected not to participate in it.