Nanex Research

Nanex ~ 31-Mar-2014 ~ SEC Loves HFT

Maybe a little too much

Link to my interview on CNBC where I discussed the first item below.

1. The SEC exists to protect High Frequency Trading?

Placing orders for which one has no intent to execute violates Section 9(a)(1)(A) of the Securities Exchange Act.

From Michael Lewis's Flash Boys:

2. A High Frequency Trading Firm Exonerates High Frequency Trading!

We finally know who helped the SEC write the flash crash report: the infamous report that incorrectly laid blame on a mutual fund company that traded futures through Barclay's. This is the same report that exonerated High Frequency Trading (HFT) from causing the flash crash.

From the bottom of this page under "milestones":

That's right! A High Frequency Trading firm provided flash crash analysis that exonerated High Frequency Trading. See if you can find this disclosed anywhere in the SEC flash crash report or related press conferences. Did the press bother to ask? Will they now?

3. Months after they said they would, the SEC has still not  Compared Time-stamps between Direct Feeds and the SIP.

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