How to Regulate HFT’s Secrets

May 29, 2014

Steve Lofchie comments in IFLR magazine about claims that the speed at which high-frequency trading (HFT) can digest what happens on one exchange and react on another by buying or selling at a different price can lead to market distortion and front-running:

"The question isn't whether we have too much competition," says Steven Lofchie, partner at Cadwalader Wickersham & Taft in New York. Instead, Lofchie asks whether the situation is a result of market forces where exchanges are seeking to beat their competitors with a better product. "Or is it the result of the SEC establishing a structure that pays exchanges for sharing market data and forces market participants to look at the bids and offers on every exchange and give them priority even if they have a very limited space in the market?"

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February 4 | PLI's CMBS and the Real Estate Lawyer 2019: Lender and Borrower Issues in the Capital Market | New York

Jeffrey Rotblat will discuss "Accumulation/Aggregation/Alternative Exit Strategies" at this event.

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