Posted by DavidJ on July 06, 2014 at 12:38:11:
In Reply to: SEC not interested in Flash Boys book revelations posted by DaveJ on July 06, 2014 at 12:29:29:
: Michael Lewis's book, "Flash Boys," revealed what was really going on in the stock market. He showed how high frequency traders are secretly rigging the market to take billions out of the pockets of ordinary investors, a few pennies at a time. It was supposed to blow the lid off of one of the market's biggest secrets and embarrass the SEC into making some quick changes to regulate them. But when asked directly about the book's revelations, the head of the securities and exchange commission, Mary Jo White, denied that the markets are rigged and said she didn't see any need to regulate high frequency trading. Michael Lewis said he was not surprised because he understands the close personal relationships that the SEC regulators have with the stock market firms.
Meanwhile, investors have been trying to get their brokers to stop sending their orders through the high frequency exchanges that have been shown to be rigged. The big brokers are not allowing it, saying it is not a privilege of investors to say how they want their orders to be handled.