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.
Love how aggressively @AGSchneiderman is going after Wall Street shenanigans. reminds me of another AG I was a big fan of.— Sean Basinski (@SeanBasinski) March 21, 2014
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