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Commercial Law

Duke Law & Technology Review

Journal

2011

Articles 1 - 1 of 1

Full-Text Articles in Law

The Invisible Power Of Machines Revisiting The Proposed Flash Order Ban In The Wake Of The Flash Crash, Austin J. Sandler Mar 2011

The Invisible Power Of Machines Revisiting The Proposed Flash Order Ban In The Wake Of The Flash Crash, Austin J. Sandler

Duke Law & Technology Review

Technological innovation continues to make trading and markets more efficient, generally benefitting market participants and the investing public. But flash trading, a practice that evolved from high-frequency trading, benefits only a select few sophisticated traders and institutions with the resources necessary to view and respond to flashed orders. This practice undermines the basic principles of fairness and transparency in securities regulation, exacerbates information asymmetries and harms investor confidence. This iBrief revisits the Securities and Exchange Commission's proposed ban on the controversial practice of "flash trading" and urges the Securities and Exchange Commission and the Commodity Futures Trading Commission to implement …