The cornerstone of Flash Boys is a discovery made by an obscure Canadian banker, Brad Katsuyama, who noticed that whenever he tried to execute a trade, the stock price moved before the order went through. A long and tortured investigation revealed that the variable speeds at which trading information travels down fibre-optic cables to the exchanges was being exploited by brokers and high-frequency traders – so-called for the volume of trades they make – to jump the queue, buy the stocks in question and sell them back at a higher price to the person who expressed the original interest. Read more: businessinsider/michael-lewis-wall-street-has-gone-insane-2014-4#ixzz2zSSqEgHP
Posted on: Sun, 20 Apr 2014 19:53:17 +0000
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