US probing high-speed trading: Attorney General
Published on Apr 4, 2014 9:41 PM
WASHINGTON (REUTERS) - The US Justice Department is investigating high-speed trading for possible insider trading, Attorney General Eric Holder will tell lawmakers on Friday, according to an excerpt of his remarks.
The disclosure comes the same week that securities regulators and the FBI also confirmed they are investigating potential wrongdoing by high-frequency stock traders.
Regulators have been examining whether ordinary investors are at an unfair disadvantage to high-speed traders, who use computer algorithms to rapidly dart in and out of trades to earn fractions of a penny that add up to big profits over time.
"I can confirm that we at the Justice Department are investigating this practice to determine whether it violates insider trading laws," Mr Holder told a House panel at a hearing on the Justice Department's budget.
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