New York Attorney General Eric Schneiderman sent subpoenas to six high-frequency trading firms seeking information about special arrangements they have with exchanges and dark pools as well as their trading strategies, according to a person familiar with the matter.
Bloomberg reports that Chopper Trading, Jump Trading and Tower Research Capital are among the firms, according to the person, who asked to not be named because the details of the investigation haven’t been made public.
Schneiderman announced last month that he’s concerned some trading platforms may sell services, such as faster data feeds, that give an unfair advantage to high-frequency traders seeking to profit from split-second price movements. He’s not the only one looking into the practice: U.S. authorities including the Federal Bureau of Investigation are probing whether the trading firms act on nonpublic information to gain an edge over competitors.
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