Compliance

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Ivy Schmerken
Ivy Schmerken
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NY Attorney General Stirs Debate on HFT Perks

Attorney General Eric Schneiderman's office turns up the heat on high-frequency traders and their "unfair" advantages. Traders are fighting back.
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As part of his Insider Trading 2.0 investigation, Attorney General Eric Schneiderman is scrutinizing services like that offer high-speed traders the ability to profit from information before other investors see it.

Specifically, Schneiderman is probing HFT's access to more in-depth market data feeds, higher bandwidth, faster cable connections and colocation, a practice which allows Wall Street banks and high-speed traders to place their computer-driven strategies in data centers closer to the exchange's matching engines.

Firms pay thousands of dollars per month to install their algorithms in these data centers.

 

Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad ... View Full Bio

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