FBI Probes Wall Street's High-Speed Traders
According to reports from The Wall Street Journal and Bloomberg, the bureau is particularly concerned big firms could be gaining unfair advantages.By Zach Toombs | March 31, 2014
In the world of high-speed trading, milliseconds can mean millions of dollars. And the FBI is concerned some traders might have an unfair advantage in that respect.
Firms often use high-speed computers and algorithms to trade at rates faster than traditional investors. And while the practice itself is legal, the FBI is investigating whether it's being used in wire fraud or insider trading. (Via BBC)
The Wall Street Journal and Bloomberg broke news of the FBI probe Monday. High-speed traders are also the focus of "Flash Boys," the new book from author Michael Lewis.