It is perhaps little wonder that Virtu was in such a hurry to use the cover of the JOBS Act to IPO itself before the whole HFT ‘game’ was exposed. Just 5 years after we first drew the world’s attention to the potential damage that HFT could do; and mere minutes after we posted our article on how HFT is being set up to be the scapegoat for all that is broken with the market and conveniently distracting from the Fed, and god, or perhaps his agent on earth Goldman Sachs, ‘completely unexpectedly’ sends in the FBI:
- *FBI SAID TO PROBE HIGH-SPEED TRADERS OVER ABUSE OF INFORMATION
- *FBI Working With SEC, CFTC in High-Speed Investigation
- *FBI Investigating Whether High-Speed Firms Trade on Nonpublic Information
Now, the question is: how many HFTs will stop trading for fear that any further trading on ‘non-public information’ will be deemed criminal from this point… or keep trading and lobby/hope that “a reasonable man” will believe their liquidity-providing lies.
via Zero Hedge http://ift.tt/1hcEAVe Tyler Durden