It appears Senator Chuck Schumer, aka Flash Gordon ,is going to get his way on the dubious practice of "flash trades.'' Maybe.
Schumer says the Securities Exchange Commission has told him it is close to banning flash trades--a process in which some high-frequency trading desks get a few millisecond sneak peak at market trade orders. This practice has fueled allegations that some high-frequency trading desks are getting an unfair advantage and can frontrun the general market.
Actually, the SEC isn't quite ready to that, although the commission appears to be moving towards a ban on most, if not, all flash trades. (See statement below).
A ban on flash trades would be a good thing. But it's still not clear how widespread the practice is.
And, as I've said many times before, this is the least serious issue when it comes to the matter of high-frequency trading.