Regulators have adopted a mild approach, but the lawyer who made Big Tobacco companies pay billions has filed a class action lawsuit against exchanges who allowed front running. His name, by the way, is Michael Lewis.
From the dawn of the 21st century and the breakthrough of the information age we are vastly accustomed to increasingly bipolar views. For two months now we have been hearing a vast array of opinions on high-frequency trading (HFT) and until now we see no middle ground on this matter.
There are only two sides to the coin - one is either with the abusers of a favourably (for them) designed market infrastructure or with the victims of alleged front-running. So it was about time to finally hear major global regulators speaking out loudly and taking their own stance. Last week the Financial Conduct Authority’s (FCA) CEO, Martin Wheatley and the Securities and Exchange Commission’s (SEC) Chair, Mary Jo White, each presented their cases and their views on HFT to the public.
Class Action Lawsuit
Coincidentally all of this happens only a week after a new class action lawsuit was filed against a plethora of stock exchanges - the NYSE, NSE, NASDAQ, CBOE, CSE and BATS are all in this together. The lawsuit has quite different grounds from what we have seen so far - it is targeting the public function of the exchanges.
Ironically the lawyer’s name behind the class action lawsuit is Michael Lewis, but it's not the renowned author of the hit title “Flash Boys”. It's the lawyer who has already accomplished the unthinkable by winning a lawsuit against big tobacco companies back in 1994 and winning for the state of Mississippi a record $368.5 billion judgment to pay for the medical costs associated with treatment of patients with smoking related illnesses.
The new HFT suit alleges that profit activities of exchanges are creating conflicts of interest and are diminishing their self-regulatory roles and goes on to add that the dissemination of market data to certain subscribers is not a fair practice as per current legislation.
FCA Is Treating HFT Mildly
Next to these allegations, the claim by FCA’s CEO, Martin Wheatley, that the first front-running dates back to the 19th of June 1815, when Nathan Rothschild used spies and fast horses with more frequent changeover points and co-located himself on the LSE, sounds to public ears as nothing but outrageously misguided.
If we compare the regulatory structure of the market in 1815 to the one today, there is no measure to express the differences. Was the market fairer and more transparent back in the 19th century? Judging by the amount of people who were able to trade on it, it was rather poorly designed when compared to nowadays.
SEC Goes on to Further Investigate
SEC’s Chair, Mary Jo White, has not been as determined to support HFT in her statement, however, she refrained from providing significant details on what needs to be done to restore the shattered public credibility in market fairness. According to her statement, the SEC is in the process of “accessing the extent to which specific elements of the computer-driven trading environment may be working against investors rather than for them."
"The Case is About Fairness"
According to the above-mentioned lawsuit “the case is about fairness." Allegedly, fairness has been violated by failing to provide market data to all participants in a non-discriminatory manner and to add to this, the validity of the data is questionable, as the infrastructural access for a set part of market participants has been vastly different from what the rest of the customers of the exchange and the actual data that they see, has not been accurate in real time.
Looks like the HFT saga is not going to end anytime soon. We are attaching the full lawsuit filing for our more curious readers to have a look at.
From the dawn of the 21st century and the breakthrough of the information age we are vastly accustomed to increasingly bipolar views. For two months now we have been hearing a vast array of opinions on high-frequency trading (HFT) and until now we see no middle ground on this matter.
There are only two sides to the coin - one is either with the abusers of a favourably (for them) designed market infrastructure or with the victims of alleged front-running. So it was about time to finally hear major global regulators speaking out loudly and taking their own stance. Last week the Financial Conduct Authority’s (FCA) CEO, Martin Wheatley and the Securities and Exchange Commission’s (SEC) Chair, Mary Jo White, each presented their cases and their views on HFT to the public.
Class Action Lawsuit
Coincidentally all of this happens only a week after a new class action lawsuit was filed against a plethora of stock exchanges - the NYSE, NSE, NASDAQ, CBOE, CSE and BATS are all in this together. The lawsuit has quite different grounds from what we have seen so far - it is targeting the public function of the exchanges.
Ironically the lawyer’s name behind the class action lawsuit is Michael Lewis, but it's not the renowned author of the hit title “Flash Boys”. It's the lawyer who has already accomplished the unthinkable by winning a lawsuit against big tobacco companies back in 1994 and winning for the state of Mississippi a record $368.5 billion judgment to pay for the medical costs associated with treatment of patients with smoking related illnesses.
The new HFT suit alleges that profit activities of exchanges are creating conflicts of interest and are diminishing their self-regulatory roles and goes on to add that the dissemination of market data to certain subscribers is not a fair practice as per current legislation.
FCA Is Treating HFT Mildly
Next to these allegations, the claim by FCA’s CEO, Martin Wheatley, that the first front-running dates back to the 19th of June 1815, when Nathan Rothschild used spies and fast horses with more frequent changeover points and co-located himself on the LSE, sounds to public ears as nothing but outrageously misguided.
If we compare the regulatory structure of the market in 1815 to the one today, there is no measure to express the differences. Was the market fairer and more transparent back in the 19th century? Judging by the amount of people who were able to trade on it, it was rather poorly designed when compared to nowadays.
SEC Goes on to Further Investigate
SEC’s Chair, Mary Jo White, has not been as determined to support HFT in her statement, however, she refrained from providing significant details on what needs to be done to restore the shattered public credibility in market fairness. According to her statement, the SEC is in the process of “accessing the extent to which specific elements of the computer-driven trading environment may be working against investors rather than for them."
"The Case is About Fairness"
According to the above-mentioned lawsuit “the case is about fairness." Allegedly, fairness has been violated by failing to provide market data to all participants in a non-discriminatory manner and to add to this, the validity of the data is questionable, as the infrastructural access for a set part of market participants has been vastly different from what the rest of the customers of the exchange and the actual data that they see, has not been accurate in real time.
Looks like the HFT saga is not going to end anytime soon. We are attaching the full lawsuit filing for our more curious readers to have a look at.
EU Parliament Imposes €10,000 Cash Payment Limit in New Anti-money Laundering Legislation
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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