Fbi To Probe High-frequency Stock Trading

Please report any content that violates the terms. The Editorial Board, USATODAY 7:46 p.m. EDT April 1, 2014 The Wolf of Wall Street promotional event last week in New York. (Photo: Diane Bondareff, Invision for Paramount Pictures, via AP) SHARE 1 CONNECT 1 TWEET COMMENTEMAILMORE You know something is wrong in the way stocks are traded when trading firms spend billions on new fiber optic cable routes that shave off a few miles, and a few milliseconds, from one electronic exchange to another. They have dug costly routes through mountains and pumped fortunes into mapping sea beds. Some have even considered putting drones over the Atlantic that would relay radio signals in straighter lines than could be achieved along cable routes on a contoured ocean bottom.
Source: http://www.usatoday.com/story/opinion/2014/04/01/high-frequency-trading-michael-lewis-stocks-editorials-debates/7180003/

At Stock Options Channel , our YieldBoost formula has looked up and down the GRFS options chain for the new November 22nd contracts and identified one put and one call contract of particular interest. The put contract at the $40.00 strike price has a current bid of $3.40. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $40.00, but will also collect the premium, putting the cost basis of the shares at $36.60 (before broker commissions). To an investor already interested in purchasing shares of GRFS, that could represent an attractive alternative to paying $41.00/share today.
Source: http://www.forbes.com/sites/stockoptionschannel/2014/03/31/first-week-of-november-22nd-options-trading-for-grfs/

A law enforcement official says the investigation actually began last year. Because it is a highly technical and complex probe it will likely take months. Steve Kroft reports on a new book from Michael Lewis, “Flash Boys,” that reveals how a group of unlikely characters discovered how some high spee… As Steve Kroft reported Sunday on “60 Minutes” , this month marks the fifth anniversary of the current bull market on Wall Street, making it one of the longest and strongest in history. Yet U.S.
Source: http://www.cbsnews.com/news/fbi-to-probe-high-frequency-stock-trading/

High-frequency trading group disputes allegations

Family members have a duty to protect and safeguard that information, not to trade on it, said Jina Choi, director of the SECs regional office in San Francisco. Ching Hwa Chen, 61, of San Jose, California, overheard his wife, Informatica Corp. s senior tax director, discussing the companys quarterly results in June 2012 and gleaned that they might miss its forecasts, the SEC said in a complaint filed today WHICH ETF ‘S T BUY NOW in federal court in San Jose, California. Chen bought options and sold the companys shares short, making $138,000 when they dropped after the company didnt make the forecast, the SEC said. His wife had told him not to trade in Informatic shares under any circumstances and Chen hid the trades from her, the SEC said.
Source: http://www.bloomberg.com/news/2014-03-31/two-husbands-accused-of-trading-on-wives-overheard-talk.html

stock market is rigged by a combination of insiders stock exchanges, big Wall Street banks and high-frequency traders who can move faster than other investors. The Modern Markets Initiative , whose members are high-frequency trading firms, fired back Tuesday that the charges aired on 60 Minutes are inaccurate. “The markets are not rigged. Saying otherwise is a broad generalization that lumps the vast amount of good market behavior in with a few bad actors,” the group said in a statement. . #ICYMI – This morning, the @TODAYshow aired MMI's statement regarding #HFT and #FlashBoys .
Source: http://www.usatoday.com/story/money/markets/2014/04/01/high-frequency-trading-responses/7154347/

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