Thursday, May 28, 2015Thursday, May 28, 2015

US probing high-speed trading: Attorney General

Published on Apr 4, 2014 9:41 PM
US Attorney General Eric Holder testifies about his FY2015 budget request at a Senate Appropriations Committee hearing on Capitol Hill in Washington on April 3, 2014. -- PHOTO: REUTERS

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.

Enjoy 2 weeks of unlimited digital access to The Straits Times. Get your free access now!