On Sunday night, 60 Minutes ran a report on the complex world of high frequency trading. The segment was based on Michael Lewis’ new book, Flash Boys, which details how a handful of powerful Wall Street insiders use incredibly fast trading technology to “rig” the stock market.
Mr. Lewis explained how these firms often use their superior technology to “front-run” competitors by placing orders milliseconds before other big investors, causing the stock price to go up.
High frequency trading (HFT) has come under scrutiny for other reasons as well. Many critics argue HFT contributes to market instability and may have been responsible for flash crashes – rapid, inexplicable plunges in the stock market.
Last year, CREW released its report “Rise of the Machines,” which detailed how increasing scrutiny from government regulators prompted the industry’s campaign contributions and lobbying spending to skyrocket.
Regulators are looking into slowing down high frequency traders, which dominate the markets. Kudos to Michael Lewis and 60 Minutes for showing the world what’s really going on.
More Blog Posts
While federal information policy needs significant reform, especially around the Freedom of Information Act, POIA's enactment would move government a significant step towards becoming more open. Read More ›
Docs delivered to CREW cast serious doubts on the Bureau's assertions about the domestic use of drone. Read More ›
March 24, 2014 | Congress, Federal Agencies, Federal Bureau of Investigation (FBI), FOIA, Legal, FOIA Requests, Transparency, House Members, Ted Poe, Zoe Lofgren, Senate Members, Rand Paul, CREW v. Department of Justice (FBI's use of drones)
We discovered that even the most straightforward of campaign finance regulations can be dodged if a member of Congress is determined enough. Read More ›
The decision is yet another case showing there is no set of facts that will persuade Republican FEC commissioners to enforce campaign finance law. Read More ›
Here are our favorite provisions of the Transparency in Government Act, a bill introduced by Representative Mike Quigley (D-Ill.) and aimed at making all three branches of the government more open and accountable. Read More ›