FBI investigating high-speed trading outfits
Published on Apr 1, 2014 11:17 AM
(REUTERS) - US federal agents are investigating whether high-speed trading companies violate US laws by using fast-moving market information not available to other traders, a FBI spokesman confirmed on Monday.
Launched by the Federal Bureau of Investigation about a year ago, the investigation called the High-Speed Trading Initiative, is still in its primary stages, a senior FBI official and an agency spokesman told the Wall Street Journal, which first reported the story.
The spokesman who spoke to the Journal said high-speed trading based on information about orders that other investors do not have access to and hence putting them at a disadvantage could violate insider-trading laws.
Separately, an FBI spokesman, who did not want to be identified by name, told Reuters the agency was probing high-frequency traders front-running others' trades by getting to exchanges first, among other areas.
To continue reading, log in if you are a subscriber
Enjoy 2 weeks of unlimited digital access to The Straits Times. Get your free access now!